Trump Media Group Wants to Raise $3 Billion for Cryptocurrency Projects

The Trump family media company intends to raise $3 billion to purchase digital assets that have been supported by the US president’s administration, including bitcoin.

Six persons briefed on the subject said that Trump Media & Technology Group, which is owned by the president’s family and is responsible for the Truth Social app, wants to raise $2 billion in new equity and an additional $1 billion through a convertible bond.

Trump’s sons Donald Jr. and Eric, vice president JD Vance, and his crypto tsar David Sacks are all scheduled to appear at a major gathering of cryptocurrency investors and advocates in Las Vegas this week, which may coincide with the announcement of TMTG’s fund raise.

It’s still possible that TMTG will alter the conditions, schedule, and size of its capital offering. Strong demand in recent weeks has led to an increase in the amount of the offering, according to two people familiar with the plans who spoke to the Financial Times.

“Apparently the Financial Times has dumb writers listening to even dumber sources,” TMTG claimed in a statement, although it made no further comments. Requests for comment from Donald Trump Jr.’s representatives were not answered. A White House representative chose not to respond.

The proposal is the most recent instance of the Trump family’s cryptocurrency push, which has raised questions around potential conflicts of interest. The US will become the “crypto capital of the world,” according to the president’s pledge.

His interest in cryptocurrencies has sparked a rush of transactions meant to capitalize on a resurgence in the market. Last week, the price of bitcoin surpassed a record-high of $109,000.

TMTG’s strategy is comparable to that of Strategy, formerly known as MicroStrategy, a former software business whose market value soared to over $100 billion by purchasing tens of billions of dollars’ worth of bitcoin through debt and equity issues.

Since the secondary share offering will be conducted on at-the-market terms, it is anticipated that shares will be sold close to their closing price on Friday. With a market capitalization of almost $6 billion, TMTG’s shares closed Friday at $25.72.

The Trump family’s cryptocurrency holdings include an NFT trading card, two memecoins, and investments in stablecoin sponsor World Liberty Financial as well as the cryptocurrency mining company American Bitcoin.

Additionally, TMTG intends to introduce an exchange-traded fund with a cryptocurrency concentration. At his estate outside of Washington, Trump held a private, elegant dinner for the leading memecoin investors last week.

According to two people, brokers like BTIG and Clear Street may act as underwriters on the transaction.

Trump gave Donald Jr., who has sole investment and voting authority over the entity’s shareholdings, his 53% ownership in TMTG, which is presently valued at approximately $3 billion, in a revocable trust when he was re-elected to the White House last year.

Last month, a publicly traded blank check company headed by Brandon Lutnick, son of Commerce Secretary Howard Lutnick, reached an agreement with Tether and SoftBank for $3.6 billion to establish Twenty One Capital, a bitcoin purchasing company.

Last month, cryptocurrency company Ripple also purchased digital currency-focused prime brokerage company Hidden Road for $1.25 billion, a wager that institutional investors will increase their involvement in cryptocurrency under the Trump administration.

According to industry officials who spoke to the Financial Times, a surge of comparable cryptocurrency-related transactions is anticipated in the upcoming weeks, particularly among blank check companies.