Trump Media & Technology Group, the parent company of Truth Social, said on Tuesday that it would collect $ 2.5 billion among institutional investors to invest in Bitcoin, continuing its transformation of a social media company into financial services and crypto.
Trump Media, whose largest shareholder is President Trump, said that he would collect $ 1.5 billion from around 50 institutional investors by selling around 58 million shares. The company plans to remove an additional $ 1 billion from the sale of bonds which can also be converted into shares on a later date.
THE announcement Then came the president and his family more involved in a number of cryptographic companies. Trump holds just over 50% of Trump Media’s shares, participating about 2.7 billion dollars one of his most precious investments.
The sale of new actions will potentially dilute the value of Trump Media shares, including the 115 million shares that Trump has. The president’s actions are held in a trust managed by his eldest son, Donald Jr., who is also a member of the board of directors of Trump Media.
As part of the agreement, which could conclude on Thursday, the shares will be sold at $ 25.72.
Trump Media’s shares fell 9% in the afternoon trade on Tuesday. The action is down 31% for the year.
Trump Media, who has a market value of just over 5 billion dollars, said that with the species collected from the action and the sale of bonds, she would create one of the largest business reserves to invest in Bitcoin. The company draws a page from the investment strategy made famous by the corporate strategy of Michael Saylor, formerly known as Microstrategy, which was one of the first to invest powerfully in Bitcoin as a cash management technique.
