The media company of President Donald Trump announced on Tuesday that institutional investors will purchase $2.5 billion of its stock, with the proceeds going toward the establishment of a bitcoin reserve.
According to Trump Media and Technology Group, the operator of Truth Social and other companies, approximately 50 institutional investors will contribute $1.5 billion in the private placement for common shares and an additional $1 billion for convertible senior notes.
According to Trump Media, the proceeds will be allocated to the establishment of a “bitcoin treasury.”
Devin Nunes, CEO and Chairman of Trump Media, stated in prepared remarks that this investment will assist in the defense of our Company against harassment and discrimination by financial institutions, which are prevalent among many Americans and U.S. firms.
Trump Media & Technology Group Corp., which is headquartered in Sarasota, Fla., experienced a 9% decline in its stock price.
Many other organizations have implemented comparable strategies through cryptocurrency. MicroStrategy Inc., a developer of cloud and mobile software, has assembled a treasury reserve that includes billions of bitcoin through debt financing and stock sales.
READ MORE: Man Who Purchased $22 In Bitcoin Entirely Forgot About It And Returned To A Fortune
In his initial term, Trump characterized cryptocurrencies as “not money,” citing their volatility and a value that was “based on thin air.” However, his stance on the technology has since changed.
Trump received assurances that crypto industry supporters would spend lavishly to secure his reelection during an affair at his Mar-a-Lago club in Florida during his presidential campaign in May 2024.
Trump’s recent decision to provide a swanky dinner at a luxury golf club in Northern Virginia to 220 of the top investors in one of his other cryptocurrency ventures, the $Trump meme coin, sparked accusations that the president was combining his responsibilities in the White House with personal gain.
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