Trump Media plans $2.5 billion bitcoin purchase
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Trump Media & Technology Group, the publicly traded parent company of President Trump's social media platform, said Tuesday it is raising $2.5 billion to buy bitcoin.
Why it matters: It's the latest of several crypto strategies by businesses linked to President Trump — moves that have drawn congressional criticism and slowed progress on digital-asset legislation.
Driving the news: Trump Media said Tuesday it agreed to sell around $1.5 billion in stock and $1 billion in convertible bonds through a private placement — money it will use to to buy bitcoin, which it will hold in its treasury.
- "We view Bitcoin as an apex instrument of financial freedom, and now Trump Media will hold cryptocurrency as a crucial part of our assets," Trump Media CEO Devin Nunes said in a statement. "This investment will help defend our Company against harassment and discrimination by financial institutions, which plague many Americans and U.S. firms."
Zoom in: Nunes said the strategy would also provide opportunities for Trump Media in areas like subscription payments and a utility token.
The big picture: The strategy to invest in bitcoin in a corporate treasury has been popularized by Michael Saylor's Strategy, formerly known as MicroStrategy.
- Trump Media's announcement comes two months after President Trump signed an executive order establishing a national strategic bitcoin reserve.
State of play: Trump Media shares fell over 10% in late morning trading Tuesday following the announcement.
- Bitcoin rose slightly, hovering just above $110,000, not far from an all-time high.
Disclosure: In 2023, TMTG sued 20 media organizations, including Axios, for defamation. That suit in Florida is ongoing.
