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Trump Media Plans $3 Billion Cryptocurrency Purchase

Trump Media and Technology Group (TMTG) plans to raise $3 billion to purchase bitcoin and other cryptocurrencies, as reported by the Financial Times. The report cites six individuals familiar with the transaction, who stated that the company intends to sell approximately $2 billion in new capital and another $1 billion in convertible bonds.

Additionally, sources indicated that the size of the offering has increased in recent weeks as demand has strengthened, and TMTG may unveil its plan at a gathering of crypto investors in Las Vegas, where Vice President JD Vance, Donald Trump Jr., Eric Trump, and White House ‘Crypto Czar’ David Sacks. Individuals involved in the discussions said that if TMTG completes the offering at the target size, it will immediately allocate about half of the proceeds for the purchase of bitcoin, with the remainder allocated opportunistically.

According to data from Bitcoin Treasuries, this investment would make TMTG the seventh largest bitcoin holder among publicly traded and private companies.

Trump Media Mimics Strategy

TMTG will structure the equity portion through a market sale, which has valued the media group at nearly $6 billion. The tranche of convertible bonds provides investors with debt that can be converted into equity, a mechanism popularized by Strategy during its accumulation of 580,250 bitcoins.

People familiar with the negotiations told the report that brokers ClearStreet and BTIG are in talks to finalize the deal. In a statement, TMTG dismissed the source of the report as unreliable but did not offer any further comment, while representatives for Donald Trump Jr. and the White House declined to respond.

Trump’s Crypto Ventures

Donald Trump and his family have cultivated crypto-related ventures, such as the meme tokens TRUMP and MELANIA, stakes in the miner American Bitcoin, and the creation of the decentralized application World Liberty Financial.

TMTG also plans to launch a line of crypto ETFs under the brand Truth.fi in partnership with the exchange Crypto.com. Notably, TMTG revealed the Truth.fi branch on April 29 in a letter to shareholders. The document also considers launching a digital wallet and a token called Truth+.