Trump Media and Technology Group is the parent company of the Truth Social platform under U.S. President Donald Trump. The company has refuted a report claiming it plans to raise $3 billion through a combination of equity and convertible bonds to purchase Bitcoin and other cryptocurrencies.
The Financial Times reported on May 26, citing six people familiar with the matter, about the company's plans, but Trump Media told the outlet: "Clearly, the Financial Times has foolish authors listening to even more foolish sources."
Trump Media did not immediately respond to Cointelegraph's request for comment.
If Trump Media implements the plans reported, it would follow the example of companies like Strategy in purchasing cryptocurrencies.
The Financial Times reported that Trump Media plans to issue $2 billion in equity and $1 billion in convertible bonds, a type of asset that can be converted into equity later, with the financing size potentially subject to change.
Equity is expected to be sold at market prices as of the close on May 23. On that day, Trump Media (DJT) shares closed at $25.72, up 4.6% for the day. As of May 23, Trump Media's market capitalization was $5.7 billion.
The plans reported by the company follow similar approaches pioneered by companies like Strategy, Metaplanet, and Semler Scientific, allocating part of their funds to Bitcoin (BTC).
Some companies have stated that investing in cryptocurrencies provides a hedge against inflation and prevents them from becoming "zombie companies."
This move may also lead to increased scrutiny of the Trump family's growing cryptocurrency business. Democratic lawmakers have opposed bipartisan legislation due to the Trump family's cryptocurrency dealings, with some protesting the meme coin dinner hosted by Trump on May 22.
Trump's cryptocurrency associations include non-fungible token collectibles, Official Trump (TRUMP) and Melania (MELANIA) meme coins, the decentralized finance platform World Liberty Financial, and stablecoins pegged to the U.S. dollar. Critics argue that Trump's cryptocurrency ventures pose a conflict of interest, especially since he may influence an industry from which he could profit.
According to reports, Trump transferred 53% of his shares in Trump Media Technology Group to a revocable trust managed by his son, Donald Trump Jr.
Related: Pakistan appoints special assistant to the Prime Minister for blockchain and cryptocurrency affairs
Original article: “Report: Trump Media Group Denies Plans to Raise $3B to Buy Cryptocurrency”
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