Trump Media's Bitcoin Investment Plan Gets SEC Nod, Unlocking $2.3 Billion In Capital

Trump Media and Technology Group’s DJT Bitcoin BTC/USD investment plan has received approval from the Securities and Exchange Commission, the company said Friday.

What Happened: The firm, majority-owned by President Donald Trump and which operates the Truth Social platform, now has access to approximately $2.3 billion in capital, according to a press release. This funding, sourced from nearly 50 institutional investors, can be utilized to buy Bitcoin whenever required, making it “one of the largest” Bitcoin treasuries
deals for a public company.

Trump Media announced a private offering last month under which it agreed to issue and sell its common stock and principal amount of 0.00% convertible senior secured notes to create a Bitcoin treasury. The Bitcoin purchased would be held on its balance sheet alongside cash and cash equivalents.

By simultaneously enhancing and growing our social media platform, TV streaming platform, and our FinTech brand, while establishing a Bitcoin treasury, we aim to continue rapidly transforming Trump Media into an indispensable company for the expanding customer base of the Patriot Economy,” Trump Media’s CEO and President Devin Nunes said.

Why It Matters: This development comes days after American Bitcoin, a Bitcoin mining company backed by Eric Trump and Donald Trump Jr., mined $23 million worth of the apex cryptocurrency. The firm, which plans to go public in the second half of the year, stated that its purpose was to access “efficient” capital and utilize it to boost Bitcoin’s reserve per share.

The Trump family has been deepening their involvement in the Bitcoin space. Truth Social recently submitted a filing for a “Truth Social Bitcoin ETF," designed to track the price of the apex cryptocurrency.

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Moreover, at a Bitcoin conference last month, Donald Trump Jr. stated that they are "seriously long" on Bitcoin.

Price Action: Trump Media stock closed 2.06% lower at $19.52 during Friday’s trading session, according to data from Benzinga Pro. Bitcoin was trading at $106,535.46, up 0.93% in the last 24 hours.

As of this writing, the DJT stock exhibited a low value score— a metric that evaluates an asset's relative worth by comparing its market price to fundamental measures. In case you’re looking to pack your portfolio with high-value equities, check out Benzinga’s proprietary Edge Rankings score.