Trump Media Group Eyes $3 Billion in Cryptocurrency Investments
The Trump family media enterprise is gearing up to secure $3 billion to invest in cryptocurrencies like Bitcoin, aligning with the digital asset vision promoted by the Trump administration. Trump’s Media & Technology Group (TMTG), which oversees the Truth Social platform, is reportedly looking to gather $2 billion through new equity and an additional $1 billion via convertible bonds, as disclosed by multiple sources familiar with the situation. This capital-raising initiative could be unveiled prior to a significant cryptocurrency gathering in Las Vegas this week, featuring appearances from Vice President JD Vance, Donald Trump Jr., Eric Trump, and David Sacks, who is recognized as Trump’s crypto advisor. However, the specifics concerning the timing, size, and conditions of TMTG’s fundraising efforts may still be subject to change. Insider information has suggested that the offering’s scale was expanded recently due to heightened interest. TMTG responded to the Financial Times’ coverage by criticizing its reporting but did not elaborate further. Meanwhile, inquiries directed towards Donald Trump Jr.’s representatives went unanswered, and a spokesperson from the White House opted not to comment.
Concerns Over Potential Conflicts of Interest
This initiative represents the latest move by the Trump family into the cryptocurrency landscape, raising alarms about possible conflicts of interest. The President has made a commitment to positioning the U.S. as the “crypto capital of the world,” a stance that has catalyzed a surge in financial activity within the crypto sector. Recently, Bitcoin achieved an unprecedented peak of $109,000, contributing to a resurgence in the cryptocurrency market. TMTG’s strategy mirrors that of Strategy, formerly known as MicroStrategy, which has seen its market capitalization soar to over $100 billion after leveraging debt and equity to amass substantial Bitcoin holdings. TMTG’s secondary share offering is planned to occur under market conditions, suggesting that shares will be available close to their Friday trading closing price of $25.72, translating to a market valuation of around $6 billion.
Diverse Crypto Ventures by the Trump Family
The Trump family’s entry into the cryptocurrency domain has included various ventures, such as NFT trading cards, two meme-inspired cryptocurrencies, and investments in American Bitcoin, a crypto mining operation, as well as World Liberty Financial, a stablecoin supporter. TMTG is also preparing to introduce an exchange-traded fund (ETF) dedicated to cryptocurrency. Recently, Trump held an exclusive gala for leading investors involved in his meme coin project at his resort near Washington, D.C.
Financial Partnerships and Strategic Moves
ClearStreet and BTIG are among the financial firms that may act as underwriters for this deal, according to two insiders. Following his reelection, Trump transferred his 53% stake in TMTG—valued at approximately $3 billion—into a revocable trust managed by his son Donald Jr., who now holds exclusive investment and voting authority over the trust’s assets. Additionally, a publicly traded special purpose acquisition company (SPAC) led by Brandon Lutnick, son of Commerce Secretary Howard Lutnick, recently finalized a $3.6 billion arrangement to establish a Bitcoin purchasing entity named Twenty One Capital, in collaboration with Tether and SoftBank. Furthermore, cryptocurrency firm Ripple has initiated a $1.25 billion acquisition of Hidden Road, a prime brokerage firm focused on digital currencies, betting that institutional investment in crypto will intensify under the Trump administration. Industry leaders have indicated to the Financial Times that a series of similar crypto-centric transactions, particularly among SPACs, are anticipated in the forthcoming weeks.
