Trump Media Group Plans to Raise $3 Billion for Bitcoin Treasury

Trump Media and Technology Group plans to raise $3 billion in equity and bonds for cryptocurrency investments, but denies reports of establishing a Bitcoin treasury. The potential move raises questions about conflicts of interest for Trump amid scrutiny from lawmakers regarding his crypto businesses.

In a surprising turn of events, the Trump Media and Technology Group, known for the Truth Social platform, is reportedly looking to raise a whopping $3 billion. This money, a mix of equity and convertible bonds, is aimed at stepping into the world of Bitcoin and other cryptocurrencies. Sounds ambitious, right? The Financial Times broke the story, suggesting that this could put Trump Media alongside other companies starting crypto treasuries.

However, just as quickly, the company slapped down the report. In a statement cited by the FT, they made clear, “Apparently the Financial Times has dumb writers listening to even dumber sources.” Cointelegraph has reached out for additional comments but hasn’t heard anything back at the time of writing. Almost like a game of phone tag that never quite connects.

The plan involves raising $2 billion through equity and $1 billion via convertible bonds — a type of asset that may transform into equity later on. According to the FT, these figures could shift, so it’s not completely set in stone yet. The equity side is expected to be sold at the market price, which as of May 23, was $25.72, thanks to a 4.6% daily jump, giving the company a $5.7 billion market cap.

This strategy seems to mimic what other companies, like Strategy and Semler Scientific, are doing — investing some capital in Bitcoin. Their rationale? A hedge against inflation and a way to avoid being labeled as “zombie companies.” Basically, they’re trying to keep afloat in challenging economic waters and Bitcoin is the life raft they hope will keep them above water.

Yet this possible venture doesn’t come without its own set of worries. Republicans and Democrats alike have their eyebrows raised at what a growing involvement in crypto might mean for the Trump family. On May 22, protests erupted against a memecoin dinner hosted by Trump, amid rising concerns about conflicts of interest stemming from his cryptocurrency engagements, which include non-fungible tokens, the Official Trump and Melania memecoins, and more.

Amid these developments, it’s been reported that Trump transferred his controlling share in the media group to a trust managed by his son, Donald Trump Jr. This move could certainly raise questions about self-dealing and insider trading, especially since Trump has influence over an entire industry in which he stands to gain. It’s a web of financial intrigue that just keeps getting stickier.

Keep an eye on this one; it’s definitely not just another day in the world of finance.

In summary, Trump Media and Technology Group’s reported bid to raise $3 billion for a potential Bitcoin treasury could reshape its financial strategy and align it with similar companies venturing into crypto. However, the company has vehemently denied these plans, inviting scrutiny from lawmakers and the public about potential conflicts of interest from Trump’s various crypto dealings. As questions loom over the future of these investments, the saga of Trump and cryptocurrency continues to develop with suspense.

Original Source: cointelegraph.com