PANews
PANews|May 28, 2025 02:49
The Trump family's calculations in the cryptocurrency industry are getting louder and louder. On May 27th, Trump Media Technology Group (TMTG) announced that it will raise $2.5 billion to purchase Bitcoin, following MicroStrategy's Bitcoin balance sheet strategy. This financing includes $1.5 billion in common stock and $1 billion in zero coupon convertible bonds, and subscription agreements have been reached with approximately 50 institutional investors. The cryptocurrency platform http://(Crypto. com) and Anchorage Digital will provide custody services, and the financing is expected to be completed on May 29th. According to TMTG's official disclosure, this move aims to incorporate Bitcoin into the company's asset system, bringing multiple synergies such as payments, tokens, and subscriptions to the Truth Social ecosystem. CEO Devin Nunes stated that Bitcoin will become a core asset to resist harassment from financial institutions. However, the company's stock price closed down 10.38% on the same day, and has fallen by 31% so far this year. After being exposed by the media in advance, the company initially denied the news and quickly released an official announcement, causing market reactions to be divided. It is worth noting that this plan is widely seen as emulating MicroStrategy's Bitcoin strategy. The latter has been continuously raising funds to purchase BTC since 2020, and currently holds a total of 580250 BTC, with Bitcoin becoming its core asset. Although there is controversy in the market over this high leverage strategy, data shows that its financing cost is extremely low, with an annualized interest rate of less than 0.5%. Trump Media's revenue in the past quarter was only $820000, with a loss of $32 million. With the help of this Bitcoin project, the company is gradually shifting towards financial services and cryptocurrency asset layout. Since the beginning of this year, the company has launched http://Truth.Fi Signed an ETF cooperation memorandum with http://(Crypto. com) and plans to introduce payment and subscription functions to the platform through Truth tokens. From a political perspective, this plan also echoes the encryption policies promoted by Trump during his presidential campaign. In March of this year, Trump signed an executive order to include five types of encrypted assets, including Bitcoin, in the "US Digital Asset Reserve" and declared that the United States would become the "global capital of encryption". Overall, TMTG's Bitcoin strategy is both a capital action and a political stance. The long-term effect will depend on market performance and regulatory trends.
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