On May 27, 2025, local time in the United States, Trump Media and Technology Group (TMTG), the company operating the Truth Social platform, just dropped a bombshell announcement. They plan to raise $2.5 billion through private funding to build a Bitcoin Treasury as part of the company's reserves, aimed at financial stability and long-term value storage.

From Debunking to Official Announcement, Only 14 Hours Apart

Just the day before TMTG's official announcement, the Financial Times reported that TMTG planned to raise $3 billion ($2 billion in stocks + $1 billion in bonds) to invest in Bitcoin and other cryptocurrencies, with the announcement set to come before the Bitcoin 2025 Conference. However, in response to this news, TMTG not only quickly "debunked" it but also lashed out at the Financial Times journalist, calling them foolish and stating they "believed an even more foolish news source."

However, just half a day later, TMTG officially announced the $2.5 billion Bitcoin Treasury plan, with some discrepancies in the amount and the so-called "foolish" rumor. TMTG will raise $2.5 billion through the issuance of $1.5 billion in common stock and $1 billion in zero-interest convertible senior secured notes. According to Bloomberg reports, around 50 institutional investors have subscribed to this funding, expected to be completed around May 29. Crypto .com and Anchorage Digital will handle Bitcoin custody, with Yorkville Securities and Clear Street as the lead underwriters. Howard Lutnick, the newly appointed Secretary of Commerce in the Trump administration and former CEO of Cantor Fitzgerald, will serve as a transaction advisor.

At the time of this announcement, the price of Bitcoin was approaching its all-time high, coinciding with the largest annual digital asset event, the "Bitcoin 2025" conference, taking place on the Las Vegas Strip. This conference solidified former President Trump's image as the United States' first "Cryptocurrency President" last year and this year's lineup includes Vice President JD Vance, Trump's sons Donald Trump Jr. and Eric Trump, as well as White House crypto advisor David Sacks, and industry heavyweight Michael Saylor from MicroStrategy. TMTG's decision to make this major move just before the conference could be a strategic effort to leverage the global crypto craze and amplify their market influence.

As soon as the news broke, the market reacted dramatically. Before the opening bell on May 27th, the TMTG stock price (DJT.O) surged by 18.2%, only to quickly plummet to -12%, ending the day with a 2.88% gain. At the market open, the price dropped by nearly 12%, marking the largest single-day decline since March 10th. However, concurrently, crypto-related stocks saw a general uptrend, with Coinbase rising by 1.89%, MicroStrategy by 2.1%, and MARA Holdings by 3.8%. This company, with a market capitalization just over $5 billion, only generated $820,000 in revenue in the last quarter of the year but reported a $32 million loss. Mike Stegemoller, a finance professor at Baylor University, commented, "This looks more like a move to abandon the existing business strategy."

In this statement, TMTG CEO Devin Nunes emphasized that Bitcoin is the "ultimate tool of financial freedom" and will help the company resist the "harassment and discrimination" of financial institutions, paving the way for future business ventures such as subscription payments for Truth Social and Truth+ platforms, as well as utility tokens. He also revealed that this investment is a key step for TMTG in transitioning to a holding company, with plans to acquire more high-quality assets in line with the "America First" principle.

By the end of the first quarter of 2025, TMTG held $759 million in cash and equivalents. This $2.5 billion financing will significantly increase its asset base, but it has also left the market curious about the company's execution capabilities and risk tolerance.

Embracing the "Stock Market Microstrategy Wave"

Trump's frequent moves in the cryptocurrency space are nothing new. Positioned as a bastion of "free speech," Truth Social aims to combat the censorship of tech giants, with its decentralized brand image aligning well with the principles of Bitcoin. Among Trump's supporters, the voice of the crypto community is growing louder, and investing in Bitcoin can not only appeal to this segment but also potentially attract new users to Truth Social, enhancing platform stickiness.

Financial pressure may be another major driver behind TMTG's move. Since its launch, Truth Social has been burning through cash at an alarming rate, with uncertain profit prospects. As of the end of the first quarter of 2025, the company's cash reserves were only $7.59 billion, far from sufficient to support its ambitious media and tech vision.

TMTG is likely to emulate MicroStrategy's "Bitcoin Treasury" model—making large-scale Bitcoin purchases through equity and debt financing, hoping for its long-term appreciation to boost the company's valuation. This strategy has been highly successful for MicroStrategy, with its founder Michael Saylor using similar tactics to drive the company's stock price to new highs. Former Trump administration crypto advisor David Bailey recently led a $710 million acquisition, transforming the healthcare company KindlyMD into a crypto-first enterprise, describing the plan as a "MicroStrategy Square." However, Bitcoin's intense volatility makes TMTG's plan risky, especially given its weaker financial foundation compared to MicroStrategy, leading to persistent market doubts about its execution capability.

This Bitcoin treasury plan continues the Trump family's expansion in the crypto space. Last week, the former president hosted a dinner at his Virginia golf club for top holders of the personal cryptocurrency $TRUMP; American Bitcoin, co-founded by his son Eric Trump, announced plans to go public this month; and World Liberty Financial, primarily owned by Trump family businesses, recently received a $2 billion investment from the UAE government.

On the same day TMTG announced its plan, Donald Trump Jr.'s PSQ Holdings also stated its intention to explore a digital asset strategy. The Bitcoin 2025 conference seemed more like a grand event to promote the Trump crypto empire. TMTG's plan may not only be about the company's finances but could also be a testing ground for the integration of the Trump political brand with the crypto economy, aiming to extend the "America First" concept to the DeFi stage.

「Biggest Winner」 Crypto . com, Trump's "Honeypot Concept"

TMTG's crypto strategy has the support of crypto.com. This crypto exchange platform not only serves as one of Bitcoin's treasuries custodians but also plays a key role in TMTG's broader initiative. As early as March 2025, TMTG announced a partnership with crypto.com to launch an ETF product covering assets such as Bitcoin and Cronos through its financial technology brand Truth.Fi, with plans for technical support and custody provided by crypto.com. This ETF is expected to be launched in 2025, pending final agreement and regulatory approval, but has already demonstrated the depth of the collaboration between the two parties.

The alignment between crypto.com and the Trump camp goes beyond the technical level. In October 2024, crypto.com received a Wells notice from the SEC, voluntarily sued the SEC, challenging its regulatory authority. Subsequently, Trump nominated crypto-friendly Paul Atkins as the next SEC chairman, leading crypto.com to withdraw its lawsuit. In March 2025, the SEC concluded its investigation of crypto.com without taking any enforcement action. In May of this year, crypto.com, which had previously established its North American headquarters in Texas, also opened a new office in Washington, D.C., geographically getting closer to the White House.

When the "America First" ideology meets DeFi, TMTG's Bitcoin treasury plan may have evolved beyond just a corporate financial strategy to become an extension of the Trump political machinery into the digital asset space.

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