Trump Media announced a transaction to sell a large number of stocks to purchase more than $232 million worth of Bit. This will make his company one of the world's largest Bit holders.
The company's stock value rose after the announcement, but it may cause political backlash in the crypto industry. The president's personal brand is becoming significantly associated with Bit.
Trump Media Purchases Bit
President Trump has participated in many crypto businesses, but his company's next plan could change the entire industry. Rumors began earlier this week that Trump Media planned to purchase Bit, and the company confirmed this.
Today's new press release revealed that the process proceeded faster than expected and the transaction was completed:
"Trump Media announced the completion of a private issuance with approximately 50 institutional investors today. This issuance was composed of a total purchase price of approximately $244 million. Trump Media will use approximately $232 million from the issuance to create a Bit treasury."
Since MicroStrategy began leading the way, more and more companies are becoming major Bit holders. After the 2024 election, Peter Schiff sarcastically suggested that Trump Media should buy Bit, and it seems this statement is becoming a reality.
To be clear, the press release leaves some room for interpretation, and 100% of the proceeds may not go to this reserve. Still, Riot, the third-largest corporate Bit holder, holds less than $2 billion in tokens.
If Trump Media is committed to this Bit acquisition, it will immediately hold a larger reserve than any company other than Marathon or MicroStrategy.
After Trump Media made this Bit announcement, its stock price rose by about 4%. Bit has been performing well recently and showed consistent growth while reducing volatility over the past 90 days.
By investing now, Trump's personal business is becoming more deeply involved in the industry that was central to his political administration.
Of course, Trump Media has experienced many controversies, and this purchase may indicate conflicts of interest. Crypto already accounts for a large part of Trump's net worth and has caused much criticism.
This purchase will further connect the Bit ecosystem with Trump's personal brand, which may not always be advantageous.
