Trump Media Announces $2.5 Billion Fund; Plans to Hold Bitcoin in Treasury

Tone & Political Bias: Center-Leaning

Why: The article presents facts without partisan language or value judgments, maintaining a neutral tone throughout.

Trump Media Unveils Strategic Investment Plan

Trump Media & Technology Group (TMTG), the parent company of Truth Social, announced on Tuesday that it has launched a $2.5 billion shelf registration to fund future investments. This move signals a bold financial strategy, including a plan to hold Bitcoin as part of its treasury reserve.

The announcement comes weeks after the company went public through a merger with Digital World Acquisition Corp (DWAC).

Bitcoin Added to Treasury Holdings

TMTG disclosed in a filing with the U.S. Securities and Exchange Commission (SEC) that it has already purchased an unspecified amount of Bitcoin and intends to acquire more in the future.

• The filing stated: “The company believes in the long-term potential of Bitcoin as an investment and a store of value.”

• This marks one of the highest-profile endorsements of cryptocurrency among publicly traded firms aligned with a political brand.

• TMTG will hold the Bitcoin directly, rather than through a fund or custodian.

  
  

Shelf Registration Details

The $2.5 billion shelf registration allows the company to sell various types of securities, including common stock, preferred stock, and warrants, over time.

• Shelf registrations are a common tool that gives companies flexibility in raising funds when market conditions are favorable.

• The funds could be used for “general corporate purposes,” according to the filing, which may include acquisitions or debt repayment.

  
  

Post-Merger Valuation and Stock Performance

Trump Media’s public offering via its merger with DWAC initially drove its valuation to nearly $8 billion in late March. However, the company has faced high volatility in the stock market.

• TMTG’s shares have dropped significantly since the debut, with market capitalization hovering around $6 billion as of the latest update.

• The company reported a net loss of $58 million for Q1 2024 and generated just over $770,000 in revenue during that period.

  
  

Truth Social’s Business Performance

Truth Social, the core product of TMTG, has struggled to attract mainstream advertisers or a broad user base despite its branding alignment with former President Donald Trump.

• The platform continues to rely heavily on Trump’s personal brand and public presence.

• Analysts note that without expanding its user engagement and monetization model, TMTG could face sustainability issues.

  
  

Executive and Shareholder Reactions

TMTG did not comment beyond the SEC filing, and Donald Trump—who owns a majority stake in the company—has not publicly addressed the Bitcoin investment or the capital raise.

• Trump's stake is estimated at over $3 billion based on current stock valuations.

• Supporters of the move see the Bitcoin strategy as a sign of financial independence and innovation.

• Critics argue that the company lacks a defined business model and is leveraging Trump’s name for speculative investment.

  
  

Cryptocurrency Market Context

TMTG’s decision to buy Bitcoin comes at a time of renewed interest in cryptocurrency, with Bitcoin prices hovering near $70,000 in May 2025.

• Other firms, including Tesla and MicroStrategy, have previously made similar moves by holding Bitcoin on their balance sheets.

• The SEC’s recent approval of Bitcoin exchange-traded funds (ETFs) has increased institutional interest in digital assets.

  
  

Regulatory Outlook

Although the company is publicly traded, its political association and strategic investment in cryptocurrency may attract additional regulatory attention.

• The SEC has increased its scrutiny of both crypto disclosures and special purpose acquisition company (SPAC) mergers in recent years.

• TMTG’s filings indicate compliance with existing disclosure laws, but analysts warn of future oversight risks.

  
  

What’s Next

TMTG’s use of the $2.5 billion fund remains open-ended, with future investments potentially reshaping its business model. Analysts and investors will closely monitor how the company allocates capital—and how Bitcoin performs as part of its treasury.