According to Donald Trump's media firm, it is seeking to raise $2. 5 billion from institutional investors in order to establish a bitcoin reserve.
On the news, the stock of Trump Media and Technology Group declined by about 10%.
The agreement with about 50 investors involves $1 billion in convertible bonds and $1. 5 billion in common equity, the earnings of which will be used to establish a bitcoin treasury. The Bitcoin treasury of Trump Media will be kept in custody by Anchorage Digital and Crypto. com.
According to Trump Media's CEO, Devin Nunes, "We see Bitcoin as an apex instrument of financial freedom, and now Trump Media will hold cryptocurrency as a crucial part of our assets. "
This purchase of a crown jewel asset is our first, and it will help shield our business from the harassment and discrimination perpetrated by financial institutions, which affects many Americans and American companies. It will also establish synergies for membership payments, a utility token, and other future transactions between Truth Social and Truth +
The fact that Trump has embraced cryptocurrency has contributed to the recent rise in bitcoin's value above $100,000. The president has presented plans for the administration to establish a "Strategic Bitcoin Reserve" and a separate "US Digital Asset Stockpile. " The President hosted a dinner for 220 investors in his $Trump memecoin at a high-end golf club in northern Virginia last week.
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