Trump Media is ambitiously trying to get into the world of cryptocurrency, announcing plans to raise $2.5 billion to create one of the largest bitcoin treasuries held by any publicly traded company.
The funding, which is part of a private investment round, comes with commitments from about 50 institutional investors, as revealed in a company press release. The deal is structured with $1.5 billion in Trump Media’s common stock and $1 billion in convertible senior secured notes, set to close around May 29. Once completed, bitcoin will be added directly to Trump Media’s balance sheet, alongside $759 million in cash, cash equivalents, and short-term investments as of the end of Q1 2025.
Despite the ambitious move, Trump Media’s stock, which is largely controlled by former President Donald Trump, saw a decline of over 7% in early trading following the announcement. Meanwhile, bitcoin (BTC-USD) is nearing record highs, trading at approximately $110,000 per coin.
Trump Media, the parent company behind the social media platform Truth Social, streaming service Truth+, and fintech brand Truth.Fi, views this bitcoin investment as a key part of its strategy to integrate digital assets into its media and financial ecosystem.
“We see bitcoin as the ultimate symbol of financial freedom, and now Trump Media will hold cryptocurrency as an integral part of our assets,” said Devin Nunes, CEO and Chairman of Trump Media. He described the move as a significant step in the company’s goal of evolving into a diversified holding company that focuses on acquiring “high-value, profit-generating assets in line with America First principles.”
Trump has called for a strategic bitcoin reserve. How would it work?
Earlier this year, President Trump unveiled plans for a strategic bitcoin reserve, reinforcing his administration’s stance that cryptocurrency is a legitimate and valuable economic asset worth safeguarding.
With a promise to make the U.S. the “crypto capital of the world,” Trump hosted a digital assets summit at the White House alongside AI and crypto advocate David Sacks. The event featured notable industry figures like Coinbase CEO Brian Armstrong and Chainlink co-founder Sergey Nazarov.
“At recent events, the U.S. government foolishly sold off tens of thousands of bitcoins, worth billions, when they should’ve held onto them,” Trump remarked during the summit. “From here on out, we will follow the rule every true bitcoiner knows: never sell your bitcoin. I don’t know if it’s right, but so far, it’s worked—and we’re keeping it that way.”
The full impact of Trump’s executive order is still uncertain. Some crypto experts see it as symbolic, while others believe it could trigger a global shift toward more serious adoption of cryptocurrency by international governments.
The strategic bitcoin reserve’s main objective is to treat bitcoin as a reserve asset—a safeguard to prevent the U.S. from selling off its accumulated bitcoin holdings, which have mainly been obtained through criminal and civil asset forfeiture.
Reserve assets are crucial for stabilizing a country’s currency and economy, offering a source of backup in times of crisis. This concept mirrors the creation of the Strategic Petroleum Reserve under President Gerald Ford in 1975, which aimed to secure the country’s oil supply following the 1973 oil embargo.
Currently, the U.S. government holds 200,000 bitcoins—worth anywhere from $12 billion to $21 billion—making it the largest bitcoin holder in the world. In the past, the government has sold off parts of its bitcoin stake, resulting in a loss of more than $17 billion, according to the Trump administration.
Trump’s executive order also indicates a shift from merely holding bitcoin to actively acquiring more. The order directs the U.S. Treasury and Commerce Departments to develop strategies to acquire additional bitcoin, as long as the purchases are “budget-neutral” and don’t impose extra costs on taxpayers.
This marks a significant departure from previous administrations, says Gene Hoffman, CEO of Chia Network. “This is a clear political U-turn. The previous administration was ambivalent at best about bitcoin and made it riskier to hold. Now, the U.S. government is saying this asset is just as valuable as gold or oil.”
Haider Rafique, CMO of cryptocurrency exchange OKX, pointed out that the Trump administration is recognizing the growing demand for crypto, especially among younger investors. A recent study revealed that 42% of Gen Z investors hold cryptocurrency, while only 11% have a retirement account.
“The strategic reserve ensures that Americans can own a part of this finite supply of bitcoin,” Rafique said. “It acts as a hedge against inflation, national debt, and other economic challenges we face.”
Indeed, bitcoin’s most appealing feature is its scarcity—there will only ever be 21 million bitcoins in circulation.
Trump’s order also calls for the creation of a U.S. Digital Asset Stockpile, which will include all digital assets (other than bitcoin) acquired by the government through forfeiture. Unlike bitcoin, the government may sell off assets in the stockpile, but it won’t seek to acquire additional ones.
The order mandates that all agencies provide a full accounting of digital assets under their control within 30 days, ensuring proper management and oversight of government-held cryptocurrencies.
The goal is to centralize the U.S. government’s digital asset holdings under one system for better security, tracking, and value maximization.
While some crypto enthusiasts aren’t thrilled about the budget-neutral acquisition approach, others, like investment director Russ Mould, see it as a wise decision. “It would be strange for the U.S. to sell dollars to buy crypto,” Mould said, noting that the dollar’s status as the world’s reserve currency gives the U.S. significant global influence.
Charles Edwards, founder of Capriole Investments, criticized the decision as underwhelming. “No active buying means this is just a rebranded version of the government’s existing bitcoin holdings,” Edwards remarked on X (formerly Twitter).
Just before taking office, the Trump campaign introduced official meme coins for both President Trump (TRUMP) and First Lady Melania Trump (MELANIA) on the Solana (SOL) blockchain.
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