Trump Media Has $2.3B in Bitcoin Buying Power After Closing Capital Raise

Trump Media and Technology Group (DJT), the operator of Truth Social, said on Friday it has closed a $2.44 billion fundraising deal to establish a bitcoin BTC treasury.

DJT shares erased early morning losses and were up 5.6% on the day following the news.

The company sold nearly 56 million shares at $25.72 apiece and issued $1 billion in 0% convertible notes maturing in 2028, according to a press release. Some 50 institutional investors subscribed to the offering. The placement was led by Yorkville Securities and Clear Street, with Cantor Fitzgerald serving as financial advisor.

The firm said it will direct the net proceeds of $2.32 billion to purchase BTC for its treasury, with Crypto.com and Anchorage Digital providing custody services.

The move adds the company to a growing list of publicly-traded firms that have raised capital for adding crypto assets like bitcoin to their balance sheet, a playbook pioneered by Michael Saylor's Strategy (MSTR). The software firm has become the world's largest corporate holder of the leading crypto asset, accumulating over $60 billion in BTC by financing the purchases via a combination of equity and debt issuances.

Trump Media shared plans earlier this year to launch a financial services platform focusing on crypto and customized exchange-traded funds. It also said it wants to partner with crypto exchange Crypto.com to launch the ETF products.