Trump Media Group to raise $2.5 billion in capital for cryptocurrency reserves

President Donald Trump’s social media company announced on Tuesday that it plans to raise approximately $2.5 billion to build its own bitcoin reserves.

Trump Media & Technology Group, which operates the Republican leader’s Truth Social network, said in a statement that cryptocurrency will be a key component of its asset portfolio.

The group has entered into agreements with approximately 50 institutional investors to raise capital through cryptocurrency investments.

Under these agreements, the company has committed to issuing and selling common stock worth approximately $1.5 billion, and to placing around $1 billion in other instruments, as part of a private offering expected to close on May 29.

"We view bitcoin as an apex instrument of financial freedom, and now Trump Media will hold cryptocurrencies as a crucial part of our assets," explained the company's CEO, Devin Nunes.

The transaction will help “protect our company from harassment and discrimination by financial institutions.”

Crypto.com and Anchorage Digital will serve as custodians of the company’s bitcoin treasury.

The offering is expected to close around May 29, according to the Republican tycoon’s company. Its stock price fell 10.4% during Tuesday’s trading session on Wall Street.

Trump has pledged to make the United States the “cryptocurrency capital of the world.”

Trump’s renewed enthusiasm for digital currencies has extended to several companies primarily led by his eldest sons.