Trump Media changes tack with $2.5 billion bet on Bitcoin, financial services

Trump Media & Technology Group, which owns Truth Social, said it will raise $2.5 billion from institutional investors to invest substantially in Bitcoin. The action marks a stark turn from its faltering social media roots into financial services and cryptocurrency. Approximately $1.5 billion will be raised through the sale of stock to roughly 50 investors, with the remainder obtained through convertible bonds, the New York Times reported.

CEO Devin Nunes stated the money would build one of the biggest corporate Bitcoin treasuries, emulating the strategy made trendy by Michael Saylor's MicroStrategy. Trump Media now intends to retain Bitcoin as a foundational asset, calling it a monument to financial freedom. The firm, which went public through a SPAC merger last year, reported huge losses — $32 million last quarter on just $820,000 revenue — with Truth Social doing poorly to bring in advertising revenue.

President Trump has over 50% ownership of Trump Media in a trust governed by Donald Jr., making it one of his richest assets. Since re-entering office, Trump has warmed up to crypto, undoing previous scepticism. His government has dropped several lawsuits and investigations of crypto companies, and his campaign has been endorsed by several crypto initiatives, including his own memecoin, $TRUMP.

Trump Media has collaborated with Crypto.com and Yorkville Advisors to introduce Bitcoin and "America First" themed ETFs. The firm also collaborates with Anchorage Digital and hired Cantor Fitzgerald as its financial advisor. As a significant financial backing, World Liberty Financial — which is associated with the Trump family — reportedly gained $2 billion from the UAE for cryptocurrency ventures. Independently, Eric Trump's American Bitcoin startup intends to go public shortly.

Experts such as Mike Stegemoller of Baylor University describe the action as a "throwing in the towel" for Truth Social, with Trump Media positioning itself as an investment vehicle focused on cryptocurrency. The shares of the company dropped over 10% after the announcement and are down 31% year to date.

The shift has added billions, at least on paper, to President Trump’s fortune. Crypto, once an afterthought in his business portfolio, is now at the centre of his financial and political narrative, reshaping both his media company and his campaign.