A report suggesting that $3 billion would be raised through a combination of equity and convertible bonds to purchase Bitcoin and other cryptocurrencies has been rejected by Trump Media and Technology Group, the firm behind former U.S. President Donald Trump’s Truth Social platform.
On May 26, a report detailing the company’s alleged plan was published by the Financial Times, based on information from six individuals said to be briefed on the matter; however, the outlet was told by Trump Media that “it appears the Financial Times relies on unintelligent writers who are listening to even less credible sources.”
A request for comment was not immediately answered by Trump Media.
If the reported plan is carried out by Trump Media, the company would be positioned to follow in the footsteps of firms such as Strategy that have invested in cryptocurrency.
It was reported by the Financial Times that $2 billion in equity and $1 billion in convertible bonds—financial instruments that can later be converted into equity—were planned to be issued by Trump Media, though it was noted that the total amount of the fundraising could be subject to change.
The equity was anticipated to be offered at the market rate as of the May 23 closing. On that date, Trump Media (DJT) shares ended at $25.72, reflecting a 4.6% gain for the day. As of May 23, the company’s market valuation had been recorded at $5.7 billion.
A similar approach to that adopted by firms like Strategy, Metaplanet, Semler Scientific, and others—where a portion of funds is allocated to Bitcoin (BTC)—is being followed, according to reports, by the company in its proposed plan.
It has been stated by some companies that investing in cryptocurrency is viewed as a hedge against inflation and a means to avoid becoming “zombie companies.”
Trump Media’s Actions Likely to Draw Increased Scrutiny
The move was also likely to attract increased scrutiny toward the Trump family’s expanding involvement in cryptocurrency ventures. Bipartisan legislation concerning the family’s crypto activities has been opposed by Democratic lawmakers, with some having organized protests in response to the memecoin-themed dinner hosted by Trump on May 22.
Trump’s connections to the crypto sector have been reflected through involvement in non-fungible token collections, the Official Trump (TRUMP) and Melania (MELANIA) memecoins, a decentralized finance platform named World Liberty Financial, and a stablecoin pegged to the U.S. dollar. Concerns have been raised by critics, who argue that these ventures present a conflict of interest, particularly given the potential for Trump to exert influence over an industry from which he may financially benefit.
As stated in the report, a 53% stake in Trump Media and Technology was transferred by Trump into a revocable trust, which is currently overseen by his son, Donald Trump Jr.
