On May 27, 2025, local time in the United States, Trump Media Technology Group (TMTG), the company that operates the Truth Social platform, just dropped a bombshell, planning to raise $2.5 billion through private placement financing to build a Bitcoin treasury and include it in the companys reserves for financial stability and long-term value storage.
Only 14 hours passed from the rumor to the official announcement
Just one day before TMTG’s official announcement, the Financial Times broke the news that TMTG plans to raise $3 billion ($2 billion in stocks + $1 billion in bonds) to invest in Bitcoin and other cryptocurrencies, and will announce it before the Bitcoin 2025 conference. However, in response to this news, TMTG not only quickly refuted the rumor, but also angrily accused the Financial Times reporter of being stupid and listening to even stupider sources.
However, just one day later, TMTG officially announced a $2.5 billion Bitcoin vault plan, but the amount was different from the so-called stupid rumors. TMTG will raise $2.5 billion by issuing $1.5 billion in common stock and $1 billion in zero-interest convertible senior secured bonds. According to Bloomberg , the financing was subscribed by about 50 institutional investors and is expected to be completed around May 29. Crypto.com and Anchorage Digital will be responsible for the custody of Bitcoin, Yorkville Securities and Clear Street will serve as the main underwriters, and the new Secretary of Commerce of the Trump administration and former CEO of Cantor Fitzgerald, Howard Lutnick, will serve as a transaction advisor.
The announcement comes as Bitcoin prices approach all-time highs and the annual Bitcoin 2025, the largest digital asset event of the year, is being held on the Las Vegas Strip. Last year, the conference solidified former President Trumps image as the first cryptocurrency president in the United States. This year, it brought together Vice President JD Vance, Trumps son Donald Trump Jr., Eric Trump, and White House crypto advisor David Sacks, as well as MicroStrategys Michael Saylor. TMTG chose to release a heavyweight on the eve of the conference, possibly to take advantage of the global crypto boom and amplify its market influence.
As soon as the news came out, the market reacted violently. Before the U.S. stock market opened on May 27, TMTGs stock price (DJT.O) soared 18.2% at one point, but soon plummeted to -12%, and finally closed up 2.88%. After the opening, the stock price fell nearly 12%, the largest single-day drop since March 10. But at the same time, crypto-related stocks generally rose, with Coinbase up 1.89%, MicroStrategy up 2.1%, and MARA Holdings up 3.8%. The company, which has a market value of just over $5 billion, only achieved $820,000 in revenue in the fourth quarter of last year, but recorded a loss of $32 million. Mike Stegemoller, a professor of finance at Baylor University, commented : This looks more like a move to abandon the original business strategy.
TMTG CEO Devin Nunes emphasized in the statement that Bitcoin is the top tool for financial freedom and will help the company resist harassment and discrimination from financial institutions and pave the way for future businesses such as subscription payments and utility tokens for Truth Social and Truth+ platforms. He also revealed that this investment is a key step in TMTGs transformation into a holding company, and that it will acquire more high-quality assets that meet the America First principle in the future.
As of the end of the first quarter of 2025, TMTG held US$759 million in cash and equivalents. This US$2.5 billion financing will significantly increase its asset size, but it also makes the market curious about the companys execution and risk tolerance.
Embrace the Stock Market Micro-Strategy Trend
Trumps frequent moves in the field of cryptocurrency are nothing new. As a bastion of free speech, Truth Social is positioned to fight against the censorship of technology giants. Its decentralized brand image coincides with the concept of Bitcoin. Among Trumps supporters, the voice of the crypto community is growing. Investing in Bitcoin can not only cater to this group of people, but also attract new users for Truth Social and enhance the stickiness of the platform.
Financial pressure may be another major driver of TMTGs move. Since its launch, Truth Social has been burning money at an alarming rate, but its profit prospects are unclear. As of the end of the first quarter of 2025, the companys cash reserves were only US$759 million, far from enough to support its grand media and technology vision.
TMTG may be following MicroStrategys Bitcoin Treasury model - buying Bitcoin in large quantities through equity and debt financing, hoping that its long-term appreciation will boost the companys valuation. This strategy has been very successful with MicroStrategy, whose founder Michael Saylor pushed the companys stock price to a new high through similar operations. David Bailey, a crypto adviser to the Trump administration, recently led a $710 million merger and acquisition to transform medical company KindlyMD into a crypto-first enterprise. He described the plan as a squared version of MicroStrategy. However, the violent volatility of Bitcoin also makes TMTGs plan full of risks, especially since its financial foundation is far less solid than MicroStrategy, and the markets doubts about its execution capabilities linger.
The Bitcoin vault plan is also a continuation of the Trump familys expansion in the crypto space. Last week, the president hosted a banquet at his Virginia golf club to entertain top holders of the personal cryptocurrency $TRUMP; American Bitcoin, co-founded by his son Eric Trump, announced plans to go public this month; and World Liberty Financial, which is mainly controlled by the Trump family business, recently received a $2 billion investment from the UAE government.
On the same day that TMTG announced its plan, PSQ Holdings, where Trumps son Donald Trump Jr. works, also said it would explore digital asset strategies. The Bitcoin 2025 conference is more like a grand event to build momentum for Trumps crypto empire. TMTGs plan may not only be about the companys finances, but may also be a testing ground for the integration of Trumps political brand and the crypto economy, aiming to extend the America First concept to the DeFi stage.
Biggest Winner Crypto.com, Trumps Monkey Honey Concept
TMTGs crypto strategy is supported by crypto.com. The crypto trading platform is not only one of the custodians of the Bitcoin Treasury, but also plays a key role in TMTGs broader layout. As early as March 2025, TMTG announced a partnership with crypto.com to launch ETF products covering assets such as Bitcoin and Cronos through its fintech brand Truth.Fi, with crypto.com providing technical support and custody. The ETF is expected to be launched in 2025, pending final agreement and regulatory approval, but it has shown the depth of the cooperation between the two parties.
The fit between crypto.com and the Trump camp is not only technical. In October 2024, crypto.com took the initiative to sue the SEC and challenge its regulatory authority after receiving the Wells Notice from the SEC. After that, Trump nominated the pro-crypto Paul Atkins as the next SEC chairman, and crypto.com immediately withdrew the lawsuit. In March 2025, the SEC ended its investigation into crypto.com without taking any enforcement action. In May of this year, crypto.com, which had previously established its North American headquarters in Texas, also opened a new office in Washington, DC , and is getting closer and closer to the White House in terms of geographical distance.
When the America First concept meets DeFi, TMTGs Bitcoin vault plan may no longer be just a corporate financial strategy, but also a tentacles extending Trumps political machine into the field of digital assets.
