The company behind former President Donald Trump, Trump Media, on Monday rolled out an ambitious, new crowdfunding scheme. They plan to raise at least $2.5 billion from institutional investors. This ambitious endeavor would constitute one of the largest allocations of bitcoin for treasury purposes by a public company. It shows pretty transparently that Trump Media wants a huge piece of the crypto action.
The new money will go to purchase bitcoin. Trump Media wants to continue holding it as a central core treasury asset. The firm has completed subscription agreements with at least 50 institutional investors. This provides a good indicator of the depth of interest and support from the financial community. This is particularly notable in light of the fact that Trump Media is currently valued at $5.3 billion. They plan to use this capital raise for improving their balance sheet following a recent period of disappointing performance.
In 2024, Trump Media lost $400 million with only $3.6 million revenue to report on that side of the balance sheet. The company’s continued inability to turn a profit is the elephant in the room in these numbers. This is why their decision to pivot towards cryptocurrency investments is so impressive. So far, the deal includes a huge dollar amount financial structure. It comprises $1.5 billion in new common stock and $1 billion in new convertible notes, illustrating the remarkable scale of this latest fundraising round.
The effort was spearheaded by David Bailey, an influential Republican crypto advisor who helped shape much of the administration’s direction on the topic during Trump’s presidency. Bailey went out on a limb and dubbed the strategy “Strategy, squared.” In particular, he focused on two major objectives — stabilizing Trump Media’s finances and realizing its potential in the burgeoning cryptocurrency market. His involvement signals a robust commitment to integrating cryptocurrency into corporate strategies, aligning with a broader trend where politically-aligned businesses increasingly convert their corporate treasuries into bitcoin-heavy vehicles.
The move coincides with major players in the cryptocurrency sector more recently ramping up their efforts. Jack Mallers of Strike is starting something new in the bitcoin world. It’s supported by Tether and SoftBank, and it is designed to take on MicroStrategy – the company known for its massive bitcoin stash. As the race to the moon heats up, Trump Media & Technology’s step into bitcoin might encourage other tech companies to re-evaluate their treasury plans.
Bailey has proven uncanny success by orchestrating a $710 million merger with healthcare tech company KindlyMD. This achievement underscores his unique capacity to manage multifaceted financial ecosystems with great expertise. You might remember that earlier this year, KindlyMD transitioned from a more typical startup model to a crypto-first approach. This decision reflects a wider trend between the healthcare industry and cryptocurrency.
Donald Trump currently indirectly owns more than 114 million shares of Trump Media through a revocable trust. This ownership stake gives him greater say in the future of the venture. This investment strategy could pay dividends beyond taxpayer savings. As a practical matter, it would send a big political signal in favor of bitcoin as an emerging asset class.