According to the Financial Times citing informed sources, Trump Media & Technology Group (TMTG), the parent company of the social platform Truth Social, is planning to raise $2 billion through new stock issuance and an additional $1 billion through convertible bonds, totaling $3 billion to purchase Bit and other cryptocurrencies.
TMTG Financing Plan to be Announced This Week?
The Financial Times noted that TMTG's financing plan might be officially announced before the large cryptocurrency investor and advocate conference in Las Vegas this week. It is understood that Vice President JD Vance, Trump's sons Donald Jr. and Eric, and TMTG's cryptocurrency head David Sacks will speak at the conference to further elaborate on their cryptocurrency strategy.
Additionally, TMTG's investment model is similar to MicroStrategy, the current Bit holdings leader among US listed companies, which has purchased hundreds of billions of dollars worth of Bit through debt and equity issuance, driving its market value to over $100 billion. Two informed sources also revealed that ClearStreet and BTIG might serve as underwriters for this transaction.
TMTG Denies Rumors
However, just a few hours ago, TMTG denied the news of raising $3 billion to purchase Bit, with its spokesperson calling the Financial Times author stupid for believing even more stupid sources.
But we know that the Trump family's layout in the cryptocurrency industry is deep and broad, and even if they were planning to raise funds to purchase Bit, it would sound like a reasonable decision. Let's continue to watch and see.
Trump Family's Layout in the Cryptocurrency Domain
The Trump family's investments in the cryptocurrency domain are quite extensive, involving multiple projects and companies. According to public information, the cryptocurrency projects currently involving the Trump family include:
- World Liberty Financial: A DeFi platform to be launched in 2024, aimed at providing intermediary-free financial services. The company has raised hundreds of millions of dollars through governance token ($WLFI) issuance.
- $TRUMP and $MELANIA Meme Coins: In January this year, Trump and his wife Melania launched meme coins named $TRUMP and $MELANIA. These tokens saw initial price surges but subsequently dropped significantly. The Trump family, through CIC Digital and Fight Fight Fight LLC, holds 80% of the $TRUMP token supply, valued at approximately $14 billion, while Melania holds 65% of her meme coin's supply, valued around $1.1 billion.
- Non-Fungible Token Trading Cards: Since December 2022, Trump has launched Non-Fungible Token trading cards featuring his personal image across four series, depicting him as various superhero personas.
- American Bitcoin: A Bit mining company co-founded by Trump's sons Eric and Donald Jr. with Hut 8, with Eric serving as the strategy chief.
