US President Donald Trump's media company on Tuesday said it plans to raise $2.5 billion to create a so-called Bitcoin treasury, furthering his embrace of the cryptocurrency sector.
Trump Media and Technology Group said it has entered into subscription deals with about 50 institutional investors.
Under this agreement, the institutional investors will put up about $1.5 billion in common stock and an additional $1 billion in convertible senior secured notes.
The company added that the offering would place Bitcoin as a key asset on its balance sheet, which totalled $759 million at the end of the first quarter of 2025.
Trump Media shares fell about 10 per cent after the announcement to $23.23 a share.
“We view Bitcoin as an apex instrument of financial freedom, and now Trump Media will hold cryptocurrency as a crucial part of our assets,” said Trump Media chief executive Devin Nunes.
Trump Media runs Truth Social, the media platform on which the US President often posts.
Once a cryptocurrency sceptic, Mr Trump emerged as one of the sector's biggest backers during his 2024 presidential campaign with promises to establish a strategic Bitcoin reserve and to take a friendlier approach towards crypto than his predecessor.
Mr Trump last week also hosted a black-tie gala at his golf club in northern Virginia for 220 of the top investors of the $Trump meme coin. The event drew conflict-of-interest concerns that the president was mixing his business and political interests.
Among last week's guests was Justin Sun, a crypto billionaire who came first in the so-called competition to win a seat at the gala. Mr Sun is a backer of World Liberty Financial, the crypto company run by Zach Witkoff. He is the son of Steve Witkoff, Mr Trump's special envoy to the Middle East.
Under former president Joe Biden's administration, the Securities and Exchange Commission sued Mr Sun in 2023 over allegations of market manipulation and offering unregistered securities. However, the Trump-led SEC announced in February it would pause the lawsuit for 60 days to seek a resolution.
That month, the SEC announced it had also paused litigation against Binance and dropped its lawsuit against Coinbase.
Separately, the Senate last week advanced a major cryptocurrency bill that would establish the first regulatory framework for stablecoins. The bill, known as the GENIUS Act, is expected to go through a prolonged amendment process.
