Trump Media and Technology Group, the parent company of Truth Social, confirmed that its $400 million share buyback program will not alter its ambitious plans for a Bitcoin treasury. In a notification released on Monday, the company stated that its board had authorized the repurchase of $400 million in common stock without impacting its strategy to establish a Bitcoin treasury with over $2 billion allocated for investment. Initially, the media group denied rumors of a potential $3 billion fundraising initiative for cryptocurrency but later revealed a commitment for a $2.5 billion capital raise specifically aimed at Bitcoin. Notably, Trump Media's Bitcoin initiative involves a private placement offering totaling around $2.3 billion. This funding is sourced from the resale of 56 million shares and 29 million convertible notes linked to its debt agreements.
In June, the SEC endorsed the registration statement for Trump Media's Bitcoin transaction. Additionally, the company has applied to launch a spot Bitcoin exchange-traded fund (ETF), as Truth Social separately filed to list and trade shares of a dual ETF associated with Bitcoin and Ether. The SEC has been approving spot Bitcoin ETFs since January 2024 and Ether ETFs since May 2024.
Former President Trump proposed the creation of a 'Strategic Bitcoin Reserve' and a 'Digital Asset Stockpile' through a March executive order, aimed at storing digital assets forfeited to the US government. This has raised concerns among some lawmakers, who have accused him of leveraging his position to benefit cryptocurrency companies. On the same day as Trump Media's announcement, California Senator Adam Schiff introduced legislation aimed at preventing public officials from engaging in digital asset sponsorship or endorsement. If passed, this could pose legal hurdles for Trump Media’s cryptocurrency initiatives.
In June, the SEC endorsed the registration statement for Trump Media's Bitcoin transaction. Additionally, the company has applied to launch a spot Bitcoin exchange-traded fund (ETF), as Truth Social separately filed to list and trade shares of a dual ETF associated with Bitcoin and Ether. The SEC has been approving spot Bitcoin ETFs since January 2024 and Ether ETFs since May 2024.
Former President Trump proposed the creation of a 'Strategic Bitcoin Reserve' and a 'Digital Asset Stockpile' through a March executive order, aimed at storing digital assets forfeited to the US government. This has raised concerns among some lawmakers, who have accused him of leveraging his position to benefit cryptocurrency companies. On the same day as Trump Media's announcement, California Senator Adam Schiff introduced legislation aimed at preventing public officials from engaging in digital asset sponsorship or endorsement. If passed, this could pose legal hurdles for Trump Media’s cryptocurrency initiatives.
