Breaking: Trump Media Closes $2.3 Billion Bitcoin Treasury Deal

The Trump Media Group has made headway in its plans to create a Bitcoin Treasury Reserve. The company has just announced that it has completed its stock sale, resulting in a capital raise of almost $2.5 billion, and it intends to use $2.3 billion to purchase BTC.

Trump Media Finalizes Bitcoin Treasury Deal

In a press release, the company owned by President Donald Trump announced that it has closed its private placement offering with almost 50 institutional investors as part of its plans to create a Bitcoin Treasury Reserve.

Trump Media stated that it will use almost $2.32 billion in net proceeds from the offering to create a Bitcoin treasury and for other general corporate purposes and working capital. This will make them one of the top Bitcoin holders among US public companies. Meanwhile, the company also revealed that crypto exchange Crypto.com and Anchorage Digital will provide custody for their Bitcoin Treasury.

As CoinGape earlier reported, the company had entered into a subscription agreement with these investors to raise $1.5 billion from the stock sales and $1 billion from the convertible senior secured notes.

Trump Media revealed that the offering consisted of the sale of around 55.8 million shares of the company’s common stock and 0.00% convertible senior notes due 2028, which led to a capital raise of $1.44 billion and $1 billion, respectively. This amounts to $2.44 billion, which is just short of the $2.5 billion that the company intended to raise.

Other companies and organizations are also warming up towards the idea of a Bitcoin Reserve. As CoinGape reported, Champions League finalists PSG just announced that they hold BTC as a reserve asset.

Meanwhile, commenting on the Bitcoin Treasury Deal, Trump Media’s CEO and Chairman, Devin Nunes, said,

 Trump Media is focused on acquiring great assets, and this deal will give us the financial freedom to implement the rest of our strategies. It means the Company will have more than $3 billion in liquid assets, and our shareholders will have exposure to Bitcoin. The deal positions Trump Media for the kind of rapid expansion we’ve always envisioned, and we look forward to advancing even further throughout the America First economy.