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The Trump family media company is making headlines with its plans to raise $3 billion to invest in cryptocurrencies such as bitcoin. This move reflects a growing interest in digital assets, which have been championed by the current administration. Trump Media & Technology Group (TMTG), the company behind the Truth Social app and controlled by the president’s family, is looking to raise $2 billion in fresh equity and another $1 billion via a convertible bond.
The capital raising initiative by TMTG is set to be announced ahead of a major crypto event in Las Vegas, where key figures such as vice-president JD Vance, Trump’s sons Donald Jr and Eric, and crypto tsar David Sacks are scheduled to speak. The offering has reportedly seen an increase in size due to strong demand, according to sources familiar with the matter.
Despite some skepticism and concerns about conflicts of interest, the Trump family remains committed to their cryptocurrency endeavors. The president has made it clear that he envisions the US becoming the “crypto capital of the world.” This vision has sparked a flurry of activity in the cryptocurrency market, with the price of bitcoin reaching record highs.
TMTG’s approach mirrors that of other successful companies like Strategy, which have capitalized on the crypto boom through strategic investments. The company’s planned secondary share offering is expected to be conducted on at-the-market terms, reflecting the current market value of TMTG shares.
In addition to their cryptocurrency ventures, the Trump family has been involved in various crypto-related projects, including NFT trading cards, memecoins, and stakes in crypto mining and stablecoin ventures. TMTG is also gearing up to launch an exchange-traded fund focused on cryptocurrency, further solidifying their presence in the market.
The upcoming capital raising initiative by TMTG is expected to involve prominent brokers like ClearStreet and BTIG. With the recent transfer of Trump’s stake in TMTG to a trust overseen by his son Donald Jr, the company is poised for further growth and expansion in the crypto space.
As the crypto market continues to evolve under the Trump administration, industry experts predict a wave of similar deals and investments in the coming weeks. Stay tuned for more updates on this exciting development in the world of cryptocurrency.
Additional reporting by Alex Rogers in Washington.
