Following MSTR! Trump Media Group plans to raise $3 billion for cryptocurrency, Bitcoin rises 2.2%
According to media reports, as Bitcoin reaches new highs, the Trump family is making a big bet on Bitcoin, planning to raise $3 billion through its media company DJT to directly buy coins, replicating the MSTR-style market capitalization wealth myth. The financing methods include issuing $2 billion in new stock and $1 billion in convertible bonds, which may be officially announced before this week's cryptocurrency conference. In response, DJT issued a statement saying that the reporters are ridiculously stupid and the sources are even more foolish, but the company did not deny the content of the report
The Trump family is making a big bet on cryptocurrency.
On Monday, May 26, according to media reports, Trump Media Group (DJT) plans to raise $3 billion, with the funds directly used to purchase cryptocurrencies such as Bitcoin. The operation is similar to the U.S. publicly traded company MSTR, which relies on financing to buy coins aggressively, turning itself into an "alternative crypto asset ETF." According to media disclosures, DJT plans to include a $2 billion stock issuance and a $1 billion convertible bond issuance.
Media sources cited insiders revealing that the originally planned fundraising scale has expanded in recent weeks due to strong investor interest. However, the terms, timing, and amount of the financing may still change. The plan is expected to be announced ahead of a major cryptocurrency conference in Las Vegas this week. Trump's sons Donald Jr. and Eric, as well as "Trump's cryptocurrency czar" David Sachs and vice presidential candidate Vance, will attend the conference.
DJT is controlled by the Trump family and is the parent company of the "Truth Social" app, directly related to Trump. In response to the reports, Trump Media & Tech Group issued a statement claiming that the reporter is absurdly foolish and the sources are even more foolish. However, the company did not directly deny the plan to raise funds to buy coins.
Following the news, most cryptocurrencies rose, with Bitcoin briefly up over 2%, hovering around $110,000. Ethereum and XRP rose over 1%, while Solana and Dogecoin rose over 3%.
How does Trump plan to operate?
The media pointed out that DJT's current round of stock issuance is at market price, with the stock price anchored at last Friday's closing price of $25.72 per share, giving the company a total market value of about $6 billion. ClearStreet and BTIG may serve as underwriters for this round of issuance.
This is not the first time the Trump family has used its fame to raise money, but DJT's approach this time is more like "MicroStrategy 2.0" (MicroStrategy is now called Strategy).
MSTR was originally a software company that financed by issuing bonds and stocks, buying billions of dollars worth of Bitcoin in one go, with its market value rising from obscurity to over $100 billion, becoming a top player in the crypto market.
Analysts pointed out that DJT's timing is not coincidental, as Bitcoin has just broken through its historical high of $109,000. The Trump family is clearly taking advantage of the "bull market restart" to make a significant entry through DJT, hoping to replicate the wealth myth of MSTR.
Moreover, DJT plans to launch a cryptocurrency-themed ETF, allowing ordinary investors to buy their selected cryptocurrency asset combinations through brokerage platforms, creating a complete ecosystem of "crypto + stock market."
In fact, the Trump family has long been deeply tied to crypto assets. Including NFT trading cards, meme coins, stablecoins, and mining projects, the Trump family has made significant investments in the crypto space. Last week, Trump hosted a banquet at his private resort for the backers of his memecoin, further strengthening alliances with core users in the crypto community However, this series of operations has also raised concerns from the outside. Media reports point out that the president's family is personally involved in buying coins, influencing regulation, and leading policy direction, raising suspicions of using policies for personal gain. This is especially concerning given his public statement about making the United States the "global cryptocurrency capital," blurring the lines between politics and business.
Intersection of Politics, Business, and Cryptocurrency
Media reports state that after being re-elected president last year, Trump transferred his 53% stake in DJT (valued at approximately $3 billion) into a revocable trust, fully controlled by his son Donald Jr., who manages the investment and voting rights. On the surface, there is a separation between politics and business, but in reality, the equity remains firmly in the family's hands.
At the same time, political and business capital is accelerating its entry into the cryptocurrency market. Brandon Lutnick, son of U.S. Secretary of Commerce Howard Lutnick, is leading a SPAC (special purpose acquisition company) in partnership with Tether and SoftBank to launch a Bitcoin investment platform called Twenty One Capital, valued at up to $3.6 billion.
Cryptocurrency company Ripple has acquired the digital currency-focused brokerage firm Hidden Road for $1.25 billion, betting that institutional funds will flood into crypto assets during the "Trump era." Several industry executives have indicated that a wave of mergers and acquisitions in the cryptocurrency space is expected to erupt in the coming weeks, especially the combination of "shell companies + cryptocurrency projects."
