Trump Media has moved two-thirds of its capital into bitcoin
Donald Trump's companies are increasing their ties to cryptocurrencies
Trump Media, which is linked to US President Donald Trump's family and operates social network Truth Social, streaming service Truth+ and fintech brand Truth.Fi, said it has bought $2 billion worth of bitcoin and related assets. That's two-thirds of the company's total assets. Shares of the media company jumped more than 8% in trading on Monday.
Details
The value of bitcoin and related assets held by Trump Media and Techology Group has now reached approximately $2 billion, the company reported. TMTG's entire liquid assets are valued at $3 billion.
"We are consistently executing our public strategy and executing our bitcoin reserve plan," Trump Media President Devin Nunez said in a press release.
The company also said it has set aside an additional $300 million for a "strategy to acquire options on bitcoin-related securities."
Shares of Trump Media jumped 8.4% to $20.2 in trading on Monday. At the same time, they have lost about 40% of their value since the beginning of the year.
Context
Trump Media lost 10% of its capitalization in late May when it announced plans to create a bitcoin reserve, for which it planned to raise $2.5 billion to buy the cryptocurrency. Such a strategy has been gaining popularity among crypto entrepreneurs in recent months, writes Yahoo Finance. Its essence is to aggressively accumulate bitcoins by issuing new shares and debt.
The pioneer in this direction was Michael Saylor's company Strategy (formerly MicroStrategy), which has been buying tokens since 2020, transforming itself from a software developer into a fund. Its example was followed by dozens of other companies, including those backed by relatives of White House advisers, the publication notes.
On Friday, President Donald Trump signed the Stablecoin Act, which he himself lobbied Congress to pass. The law establishes for the first time a federal regulatory framework for tokens pegged to the US dollar. The passage of the law is an important step towards recognizing digital assets and is expected to accelerate their mass adoption.
Meanwhile, cryptocurrency company World Liberty Financial - a startup co-founded by Trump and his sons - has already launched its own USD1 stablecoin in partnership with cryptocurrency vault BitGo, which provides the backing for the currency reserve, Yahoo Finance writes.
This article was AI-translated and verified by a human editor
