Trump Media stock surges after acquiring $2 billion of bitcoin
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Trump Media stock surges after acquiring $2 billion of bitcoin
Trump Media (DJT) stock was up over 5% Monday after the company announced it had purchased $2 billion in bitcoin (BTC-USD) Trump Media said exposure to the world’s largest cryptocurrency now comprises two-thirds of its total of $3 billion in assets. Trump is deepening his financial involvement in the crypto world as Washington, D.C., moves new legislation that offers the industry more favorable oversight. Trump on Friday signed into law a bill that establishes the first federal framework for dollar-backed stablecoins, giving those digital assets a massive stamp of approval.
President Trump’s namesake media group runs his social media platform, Truth Social, along with streaming platform Truth+ and financial services brand Truth.Fi. Trump Media said it acquired the cryptocurrencies as part of a previously shared plan in May to become a bitcoin treasury company.
With those purchases, Trump Media said exposure to the world’s largest cryptocurrency now comprises two-thirds of its total of $3 billion in assets.
Read more about Trump Media’s stock moves and today’s market action.
“We’re rigorously implementing our publicly announced strategy and fulfilling our bitcoin treasury plan,” Trump Media CEO and president Devin Nunes said in the press release.
“These assets help ensure our company’s financial freedom, help protect us against discrimination by financial institutions, and will create synergies with the utility token we’re planning to introduce across the Truth Social ecosphere.”
The company also said it allocated another $300 million to an “options acquisition strategy for bitcoin related securities.”
Read more: Can you buy crypto with a credit card? See the pros and cons.
Trump is deepening his financial involvement in the crypto world as Washington, D.C., moves new legislation that offers the industry more favorable oversight.
Trump on Friday signed into law a bill that establishes the first federal framework for dollar-backed stablecoins, giving those digital assets backed by US dollars a massive stamp of approval that is expected to encourage wider adoption
World Liberty Financial, a new crypto startup backed by Trump and his sons, has already launched its own US-dollar-pegged stablecoin (USD1) in partnership with BitGo.
President Trump on Friday signed the GENIUS Act, which codifies the use of stablecoins. (Brendan Smialowski/AFP via Getty Images) · BRENDAN SMIALOWSKI via Getty Images
Trump Media announced its plans in May to raise $2.5 billion to create a bitcoin treasury, a strategy that has recently caught fire among crypto entrepreneurs. It involves using a mix of public equity and debt issuance to acquire bitcoin more rapidly.
The technique was pioneered by Michal Saylor’s Strategy (MSTR), formerly MicroStrategy. Starting in 2020, Saylor turned his business intelligence software firm into a bitcoin juggernaut by adding as much of the world’s largest cryptocurrency to his company’s balance sheet as possible.
Dozens of other companies have followed suit, including some with backing from family members of White House advisers. Others are seeking to stockpile crypto assets outside of bitcoin, such as ether, the second-largest cryptocurrency.