Trump Media and Technology Group Corp. (Nasdaq: DJT), which runs Truth Social and other media platforms, said it has raised $2.44 billion from sale of shares and convertible notes from about 50 institutional investors, as it plans a bitcoin foray.

President Donald Trump’s media platform sold 55.9 million shares at $25.72 apiece for $1.44 billion, and convertible senior secured notes due 2028 for $1 billion. The notes can be converted to shares at a price of $34.72 apiece, giving the company potentially another $2.44 billion. Trump Media said it would use about $2.32 billion of the net proceeds to create a bitcoin treasury, and for other general corporate purposes and working capital.

Yorkville Securities and Clear Street acted as co-lead placement agents for Trump Media’s offering, with BTIG and Cohen & Co. Capital Markets acting as co-placement agents. Cantor Fitzgerald & Co., whose former Chairman and CEO Howard Lutnick is commerce secretary under Trump, acted as financial advisor. Nelson Mullins Riley & Scarborough LLP is serving as legal counsel to the Company, while Reed Smith LLP is serving as legal counsel to the placement agents.

Trump Media stock rose 2.4% to $21.33 on Friday, after rising as much as 7.6%, giving it a market cap of $4.7 billion.

“Trump Media is focused on acquiring great assets, and this deal will give us the financial freedom to implement the rest of our strategies,” said Trump Media CEO and Chairman Devin Nunes, who also chairs the President’s Intelligence Advisory Board.

“It means the company will have more than $3 billion in liquid assets and our shareholders will have exposure to bitcoin. The deal positions Trump Media for the kind of rapid expansion we’ve always envisioned, and we look forward to advancing even further throughout the America First economy,” the former California congressman added.

With what Trump Media terms “one of the most comprehensive bitcoin treasury strategies,” the company is poised to become one of the top bitcoin holders among publicly traded U.S. firms. With the pivot, Trump Media joins Strategy (formerly MicroStrategy), among others, that focus on bitcoin or cryptocurrencies. Michael Saylor’s Strategy, for example, is widely seen as a surrogate for bitcoin’s value, deriving nearly all its market cap from bitcoin holdings.

Trump Media has other existing businesses, notably the X-like platform Truth Social, but also a streaming platform called Truth+ and fintech brand Truth.Fi. In addition, Trump’s company plans to launch exchange-traded funds focused on cryptocurrencies in a partnership with crypto exchange Crypto.com. Crypto.com and Anchorage Digital have already been roped in to provide custody for Trump Media’s bitcoin treasury.

The post Trump Media Raises $2.4 Billion Amid Pivot to Bitcoin appeared first on citybiz.

This contant was orignally distributed by citybiz. Blockchain Registration, Verification & Enhancement provided by NewsRamp™. The source URL for this press release is Trump Media Raises $2.4 Billion Amid Pivot to Bitcoin.