Trump Media announces $2.5 billion in private financing to establish one of the largest Bitcoin vaults for a public company

Trump Media & Technology Group (NASDAQ: DJT) announced that it has signed subscription agreements with approximately 50 institutional investors to raise approximately $2.5 billion through a private placement. The financing, which includes approximately $1.5 billion in common stock and $1 billion in 0% convertible senior secured notes, will be completed around May 29, 2025, subject to the satisfaction of customary closing conditions.

Bitcoin is included in the balance sheet to create a "financial freedom" haven

According to official statements, the proceeds from the financing will be used to build a hybrid reserve system covering crypto assets, cash and short-term investments. Bitcoin will be included in Trump Media's balance sheet together with existing cash, cash equivalents and short-term investments as of the end of the first quarter of 2025, totaling $759 million.

Devin Nunes, CEO and Chairman of Trump Media, said: "We see Bitcoin as a top tool for achieving financial freedom, and now Trump Media will make cryptocurrency an important part of our assets. This is our first acquisition of a crown jewel asset. This investment will help our company protect against the harassment and discrimination by financial institutions that plague many Americans and American companies, and will create synergies for subscription payments, utility tokens, and other planned transactions on Truth Social and Truth+. This is a big step in the company's plan to transform into a holding company by acquiring more profitable crown jewel assets that are in line with the principle of American priority."

Convertible notes set a 35% premium, demonstrating long-term confidence

According to the disclosure information, the $1 billion convertible notes will be converted at a price of "approximately 35% premium to the current market price of common stock", showing the confidence of investment institutions in the future growth of DJT's stock price.

The joint lead underwriters of the private placement are Yorkville Securities and Clear Street LLC, and the joint underwriters include BTIG LLC and Cohen & Company Capital Markets. Cantor Fitzgerald & Co. served as financial advisor, and legal support was provided by Nelson Mullins and Reed Smith respectively.

In terms of crypto asset custody, Trump Media chose two major compliance platforms in the industry, Crypto.com and Anchorage Digital, to ensure the security and regulatory transparency of the Bitcoin vault.

Strategic transformation: from social platform to "America First" holding group

This round of financing also marks that Trump Media abandoned the "Special Acquisition Fund (SPAC Fund)" plan proposed earlier, and instead directly expanded through asset allocation and mergers and acquisitions, moving towards the holding company structure of the "America First Economy" strategy.

Trump Media is trying to build a unique "financial-information freedom fortress" with the triple leverage of "political influence + digital assets + social ecology". This large-scale entry into Bitcoin may also trigger a new round of debate in the U.S. stock market about the boundaries of digital asset allocation for listed companies.