Trump Media & Technology Group (NASDAQ: DJT), the parent company of Truth Social, is making a bold move into Bitcoin. The company has announced a $2.5 billion capital raise aimed at building a substantial Bitcoin reserve, potentially making it one of the largest holders of the digital currency among public companies.
A Strategic Shift Toward Bitcoin Reserves
The fundraising package includes:
- $1.5 billion in common stock sales
- $1 billion in convertible senior secured notes
These funds will be used to purchase Bitcoin and enhance the company’s overall investment portfolio. As of the end of Q1 2025, Trump Media already held $759 million in cash and short-term investments.
CEO Devin Nunes explained that investing in Bitcoin aligns with the company’s mission of promoting financial freedom. He also highlighted that Bitcoin ownership could protect the company from potential financial discrimination and support its long-term vision of acquiring profitable, America First-aligned assets.
Shareholder Dilution and Political Ties Raise Questions
While the move strengthens the company’s financial strategy, it also comes with trade-offs. The new stock issuance has diluted the stakes of existing shareholders, reducing the Trump family’s ownership from 52% to 41.5%. Since the company doesn’t issue special voting shares, this reduction could impact their control over major decisions. Moreover, additional dilution may occur if the convertible notes are exercised.
This financial pivot aligns with broader national policy shifts. In March 2025, the Trump administration signed an executive order establishing a Strategic Bitcoin Reserve, which allows the government to retain forfeited Bitcoin as a national asset.
Despite enthusiasm among crypto supporters, critics are wary. Some warn of the speculative nature of this approach and potential conflicts of interest stemming from the intersection of political power and private business gains. Nevertheless, this move reflects the growing role of digital assets in both corporate strategies and national economic planning.
