CFTC chairman Summer Mersinger opens up about cryptocurrency regulation in the future on The Claman Countdown.
The Trump Media and Technology Group on Tuesday announced a $2.5 billion deal with institutional investors to create a bitcoin treasury.
The company said in a release that the deal, which is expected to close by about Thursday, May 29, will feature a $1.5 billion stock issuance as well as $1 billion in convertible notes.
The $2.5 billion deal is being carried out through a private placement offering and will finance the creation of the bitcoin treasury. Trump Media is the parent company of social media app Truth Social.
Donald Trump reacts at the 2024 Bitcoin Conference in Nashville, Tenn. (Getty Images)
“We view bitcoin as an apex instrument of financial freedom, and now Trump Media will hold cryptocurrency as a crucial part of our assets,” said Trump Media CEO Devin Nunes.
TRUMP MEDIA AND CRYPTO.COM PARTNER ON ETF OFFERINGS
Trump Media’s bitcoin treasury is being created through the $2.5 billion deal. (Jakub Porzycki/NurPhoto via Getty Images)
Nunes explained that the company views the cryptocurrency treasury as a way to secure Trump Media from financial institutions that could harass or discriminate against the firm.
“Our first acquisition of a crown jewel asset, this investment will help defend our Company against harassment and discrimination by financial institutions, which plague many Americans and U.S. firms, and will create synergies for subscription payments, a utility token, and other planned transactions across Truth Social and Truth+,” Nunes said.
“It’s a big step forward in the Company’s plans to evolve into a holding company by acquiring additional profit-generating, crown jewel assets consistent with America First principles,” Nunes added.
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Trump Media CEO Devin Nunes said the bitcoin treasury will allow the company to invest in a “crown jewel asset.” (Dylan Hollingsworth/Bloomberg via Getty Images)
Crypto.com and Anchorage Digital will provide custody services for Trump Media’s bitcoin treasury.
Trump Media stock declined about 10% during the trading session as of Tuesday morning.
In January, Trump Media announced plans to launch Truth.Fi, which will offer financial services and products, including multiple investment vehicles, that it said will be rolled out this year.
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Trump Media in March partnered with Crypto.com to offer exchange-traded funds (ETFs), including ETFs focused on digital assets and a basket of cryptocurrencies, including bitcoin.
