On May 27, 2025, Trump Media Technology Group (DJT.O) announced plans to raise $2.5 billion through the issuance of common stock and convertible notes to build an enterprise-level Bitcoin treasury, marking not only an aggressive layout in the crypto field by the Trump family but also reflecting the complex interplay between White House power and private business interests. Although the group denied the Financial Times' previous report of a $3 billion fundraising, its crypto strategy has triggered significant market volatility and regulatory controversy.
I. Financing Plan: Capital Leverage in Controversy
According to the announcement, this fundraising is divided into two parts: a $1.5 billion common stock issuance and $1 billion zero-interest convertible preferred notes, with the latter setting a conversion price at a 35% premium to attract risk-seeking investors. If completed, the group's crypto asset reserves will exceed $3.1 billion (including existing cash assets of $759 million), second only to MicroStrategy. However, this plan differs from the previously reported $3 billion target, with the group accusing the Financial Times of inaccurate reporting while not denying the core intent of crypto investment.
Notably, the group has already harvested over $2 billion in market value through meme coin issuance ($Trump, $MELANIA, etc.), and although 90% of investors are at a loss (the editor is also among the losses), the family-controlled token share still brings substantial book gains. This fundraising is seen as a continuation of "crypto capitalization", attempting to deeply bind corporate assets with Bitcoin prices, forming a closed narrative of "crypto asset appreciation → stock price increase".
II. Dual Drivers of National Strategy and Commercial Ambition
The Trump administration's crypto policy shows a clear "public-private collaboration" characteristic:
1. National Level: In March 2025, Trump signed an executive order to establish a "Strategic Bitcoin Reserve", initially based on 200,000 confiscated Bitcoins (worth approximately $18 billion), prohibiting sales and planning to further legalize it through the Bitcoin Act, with a goal of reserving 1 million Bitcoins (5% of total Bitcoin) within five years. This policy is interpreted as incorporating Bitcoin into the US economic sovereignty framework to hedge dollar credit risk.
2. Enterprise Level: The Trump Media Group is accelerating its crypto financial layout, including launching a crypto ETF, investing in decentralized finance brand TruthFi (budget of $250 million), and collaborating with Crypto.com and Anchorage Digital for asset custody. The trust fund managed by his son Donald Jr. holds 53% of the group's shares (valued at $3 billion), further strengthening the family's control over crypto capital.
Analysts point out that Trump is attempting to create a synergistic effect through policy support and corporate actions: the government provides legitimacy endorsement for the crypto industry, while family enterprises leverage policy dividends to achieve capital expansion, potentially even penetrating the traditional financial system through the stablecoin USD1 (issued by World Liberty Financial), forming a new type of US dollar hegemony tool.
III. Risks and Controversies: Regulatory Arbitrage and Systemic Concerns
Despite Trump's claim to "make the US the world's crypto capital", his strategy faces multiple challenges:
- Conflict of Interest Doubts: The presidential family's direct participation in crypto asset issuance and management appears to leverage public power for private business interests. For example, the Trump coin dinner inviting the first 220 holders was criticized as a "political donation channel".
- Market Volatility Risk: Bitcoin prices have recently experienced severe fluctuations between $108,000 and $110,000, with high-leverage positions (such as whale James Wynn's 40x long position) exacerbating liquidation risks. Enterprises heavily invested in Bitcoin may face financial crises due to price volatility.
- Regulatory Vacuum Concerns: While multiple US states are advancing "Bitcoin Reserve Acts" (such as Arizona and Illinois), federal-level stablecoin regulation still has loopholes. The Genius Act legalizes stablecoins but fails to clearly define government credit endorsement responsibilities, potentially creating systemic financial risks of "too big to fail".
IV. Global Impact: New Variables in Crypto Geopolitics
Trump's crypto strategy is reshaping the global financial landscape:
1. US Dollar Hegemony Contest: Widespread stablecoin circulation could erode the traditional US dollar settlement system, but the US is attempting to consolidate hegemony through dollar-anchored digital currencies. Paradoxically, Europe is accelerating digital euro deployment to resist crypto US dollar impact.
2. National Reserve Race: The Czech Central Bank plans to allocate 5% of foreign exchange reserves (about €7 billion) to Bitcoin, becoming the first Western central bank to publicly engage with crypto assets, reflecting the spillover effect of Trump's policies.
3. Technology Sovereignty Struggle: Dubai launches the Middle East's first compliant real estate tokenization project, China accelerates digital yuan pilot, and global central bank digital currency (CBDC) competition intensifies, with crypto assets becoming a new geopolitical economic battlefield.
The Trump administration's crypto strategy is essentially a super experiment intertwining political power, business interests, and technological innovation. Its short-term goal may be to raise funds for the 2026 midterm elections, while long-term aims to reconstruct US financial hegemony in the digital era. However, if this "public-private interest bundling" model loses control, it could trigger more severe market turbulence and trust crises. As the New York Times says, cryptocurrency is launching a "financial coup", and Trump is both the revolutionary catalyst and potentially its cost bearer..
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