On May 27, 2025, local time in the United States, Trump Media & Technology Group (TMTG), the company operating the Truth Social platform, just dropped a bombshell by planning to raise $2.5 billion through private financing to create a Bitcoin treasury to be included in the company’s reserves for financial stability and long-term value storage.

From rumor to official announcement, only 14 hours apart.

Just a day before TMTG’s official announcement, the Financial Times reported that TMTG plans to raise $3 billion (with $2 billion in stocks and $1 billion in bonds) to invest in Bitcoin and other cryptocurrencies, and will make an announcement before the Bitcoin 2025 conference. However, in response to this news, TMTG not only quickly “refuted the rumors,” but alsoangrily reprimandThe Financial Times reporter is foolish, “and still believed in an even more foolish source of information.”

However, just half a day later, TMTG officiallyannounceThe $2.5 billion Bitcoin vault plan only differs in amount from the so-called “stupid” rumors. TMTG will raise $2.5 billion by issuing $1.5 billion of common stock and $1 billion of zero-coupon convertible senior secured bonds.BloombergAccording to reports, this financing was subscribed by about 50 institutional investors and is expected to be completed around May 29. crypto.com and Anchorage Digital will be responsible for the custody of Bitcoin, with Yorkville Securities and Clear Street serving as the lead underwriters. The new Secretary of Commerce under the Trump administration, former CEO of Cantor Fitzgerald, Howard Lutnick, will act as the transaction advisor.

At the time this announcement was made, the price of Bitcoin was approaching an all-time high, while the largest digital asset event of the year, “Bitcoin 2025,” was being held on the Las Vegas Strip. This conference solidified former President Trump’s image as the first “Cryptocurrency President” of the United States last year, and this year it has gathered big names such as Vice President JD Vance, Trump’s son Donald Trump Jr., Eric Trump, and White House crypto advisor David Sacks, with MicroStrategy’s Michael Saylor also in attendance. TMTG chose to make a significant announcement on the eve of the conference, possibly to leverage the global crypto craze and amplify its market influence.

As soon as the news broke, the market reacted strongly. On May 27, U.S. stocksPre-marketThe TMTG stock price (DJT.O) once soared by 18.2%, but quickly plummeted to -12%, ultimately closing up 2.88%. After opening, the stock price fell nearly 12%, marking the largest single-day drop since March 10. Meanwhile, crypto-relatedstockOverall rise, Coinbase up 1.89%, MicroStrategy up 2.1%, MARA Holdings up 3.8%. This company, with a market value just exceeding $5 billion, achieved only $820,000 in revenue in the last quarter of last year, but recorded a loss of $32 million. Baylor University finance professor Mike Stegemoller.CommentSaid: “This seems more like a move to abandon the original business strategy.”

TMTG CEO Devin Nunes emphasized in this statement that Bitcoin is “the premier tool for financial freedom,” which will help the company resist “harassment and discrimination” from financial institutions, and pave the way for future business such as subscription payments for Truth Social and Truth+ platform, as well as utility tokens. He also revealed that this investment is a key step for TMTG in its transition to a holding company, with plans to acquire more high-quality assets that align with the “America First” principle.

As of the end of the first quarter of 2025, TMTG holds $759 million in cash and cash equivalents. This $2.5 billion financing will significantly enhance its asset scale, but it also leaves the market curious about the company’s execution capabilities and risk tolerance.

Embrace the “Stock Market Micro Strategy Trend”

Trump’s frequent moves in the cryptocurrency space are no longer a novelty. Truth Social, as a bastion of “free speech,” is positioned to combat the censorship of tech giants, and its decentralized brand image aligns perfectly with the ideals of Bitcoin. Among Trump’s supporters, the voice of the crypto community is growing stronger, and investing in Bitcoin not only caters to this segment of the population but may also attract new users to Truth Social, enhancing the platform’s stickiness.

Financial pressure may be another major driving force behind TMTG’s actions. Since its launch, Truth Social has been burning through cash at an astonishing rate, with unclear profit prospects. As of the end of the first quarter of 2025, the company’s cash reserves were only $759 million, which is far from sufficient to support its grand media and technology vision.

TMTG may be emulating MicroStrategy’s “Bitcoin treasury” model—massively buying Bitcoin 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, as its founder Michael Saylor used similar operations to push the company’s stock price to new highs. Trump’s administration’s crypto advisor.David BaileyRecently, he led a $710 million merger, transforming the healthcare company KindlyMD into a crypto-first enterprise, describing the plan as “the square version of MicroStrategy.” However, the extreme volatility of Bitcoin also makes TMTG’s plan fraught with risks, especially since its financial foundation is far less solid than MicroStrategy’s, and doubts about its execution capabilities linger.

This time, the Bitcoin vault plan continues the Trump family’s expansion trend in the crypto space. Last week, the President hosted a banquet at his Virginia golf club for top holders of the personal cryptocurrency $TRUMP; his son Eric Trump co-founded American Bitcoin, which announced its listing plans this month; and World Liberty Financial, mainly controlled by the Trump family business, recently secured a $2 billion investment from the UAE government.

On the same day that TMTG announced its plans, PSQ Holdings, where Trump’s son Donald Trump Jr. is located, also stated that it would explore a digital asset strategy. The Bitcoin 2025 conference seems more like a grand event to promote Trump’s crypto empire. TMTG’s plans may not only concern the company’s finances but could also serve as a testing ground for the fusion of Trump’s political brand with the crypto economy, aiming to extend the “America First” concept to the DeFi stage.

“The Biggest Winner” Crypto.com, Trump’s “Monkey Honey Concept”

The crypto strategy of TMTG supported by crypto.com. This cryptocurrency trading platform is not only one of the custodians of Bitcoin’s treasury but also plays a key role in TMTG’s broader layout. As early as March 2025, TMTG announced a partnership with crypto.com to launch a range of assets including Bitcoin and Cronos through its fintech brand Truth.Fi.ETFThe product is planned to be supported and hosted by crypto.com. This ETF is expected to launch in 2025, pending final agreements and regulatory approvals, but has already shown the depth of collaboration between both parties.

crypto.com’s alignment with the Trump camp goes beyond just the technical level. In October 2024, crypto.com proactively sued the SEC after receiving a Wells notice, challenging its regulatory authority. Subsequently, Trump nominated pro-crypto Paul Atkins as the next SEC chairman, and crypto.com immediatelywithdraw the lawsuitIn March 2025, the SEC concluded its investigation into 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 inWashington D.C.Opening a new office brings us geographically closer to the White House.

When the “America First” ideology meets DeFi, TMTG’s Bitcoin treasury plan may not just be a corporate financial strategy, but has become an extension of Trump’s political machine into the digital asset space.

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