- Donald Trump is tying a large portion of his family’s wealth to Bitcoin during his second term as U.S. president.
- Trump Media and Technology Group plans to raise $2.5 billion through stock sales and convertible bonds to purchase Bitcoin.
- The company currently holds $759 million in cash and reported a net loss of $401 million in 2024.
Donald Trump is moving aggressively to anchor his family’s financial future to Bitcoin as his presidency enters its second term. His media company, Trump Media and Technology Group, has announced a $2.5 billion plan to purchase the digital asset. The move comes as Trump’s net worth stands at $5.2 billion, with a major portion now exposed to cryptocurrency risk.
The plan is to raise the capital to buy the big Bitcoin by selling both stocks and convertible bonds. Trump Media holds $759 million in cash and investments, making the new raise essential to proceed. The deal, advised by Cantor Fitzgerald, is expected to close by May 29.
Trump remains deeply involved in the company, retaining a $2.6 billion stake through a trust managed by Donald Trump Jr. The company is now refocusing on Bitcoin, despite being in losses. Truth Social, meanwhile, is reporting poor revenue and heavy losses as it attempts the shift.
Trump Media Targets Bitcoin to Revive Business Model
If the Bitcoin plan makes it to market, the soon-to-be-created Trump Media would sell $1.5 billion in stock and issue $1 billion worth of convertible bonds. The company said in a recent filing that fundraising would pay for the full purchase. The results in Q1 were $820,000 in revenue with $38 million in losses.
During his second term, Trump has kept a firm hand on the rudder of the company’s direction. It may be the firm’s boldest move since going public. The decision reflects the large place that Bitcoin is taking in the global financial system, said CEO Devin Nunes.
The firm’s $401 million Net Loss for 2024 has forced questions on its capacity to run without additional capital. But Trump has not sold the shares and shows no hint of changing his ways. This pivot indicates that the cryptocurrency strategy is now personally owned.
Trump-Aligned Businesses Follow Bitcoin Push
Donald Trump Jr. is on the board of PSQ Holdings, which is now mulling Bitcoin as part of its treasury. The day the Trump Media news hit, Strive Asset Management launched a $750 million Bitcoin fund. Former Republican candidate Vivek Ramaswamy co-founded the fund.
The move came alongside Cantor Equity Partners, a crypto expansion partner linked with Trump through Commerce Secretary Wilbur Ross’ family. In partnership with Tether and the Softbank Group, they will start building out Bitcoin reserves on that venture. They are a sign of a broader movement in Trump’s financial universe.
In the process, Eric Trump is pushing crypto while appearing at global events in Abu Dhabi, Dubai, and Washington. Tokyo-based Metaplanet is also now listed as an adviser to him, and says it also upped its Bitcoin holdings. Unifying the family’s strategy also aids Trump’s crypto-economic agenda.
A new Trump-linked entity has entered the Bitcoin production sector, as it now controls half of a major mining firm called Hut 8. The move goes beyond the Trumps’ ownership of digital assets. Trump-connected ventures are already embracing blockchain operations, and the firm joins a growing list.
Since Trump’s reelection, Bitcoin has soared, hitting a record $112,000 today, up 55 percent since November. Still, the volatility has been a problem: Shares of Trump Media have fallen 34% during the same period.
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