Trump Media Plans $3 Billion Cryptocurrency Push as Bitcoin Hits Record High

Trump Media's $3B Crypto Gambit: Inside the Strategy Reshaping America's Digital Asset Landscape

In a bold move that signals the administration's deepening embrace of digital assets, Trump Media & Technology Group is preparing to raise an unprecedented $3 billion specifically earmarked for cryptocurrency acquisitions, according to six sources with direct knowledge of the plans.

The capital raise—structured as $2 billion in fresh equity and $1 billion through convertible bonds—represents a strategic pivot that transforms the Truth Social parent company from a fledgling social media venture into a potential crypto powerhouse. An announcement could come before the 2025 Bitcoin Conference opens in Las Vegas tomorrow, multiple sources confirmed.

"This isn't just another corporate treasury diversification play," said a Wall Street executive familiar with the deal's structure who requested anonymity due to confidentiality obligations. "They're building a multi-faceted crypto platform with regulatory tailwinds at their back. The market is pricing that optionality aggressively."

The MicroStrategy Playbook with a Political Edge

TMTG's approach closely mirrors that of MicroStrategy, which has used successive debt and equity offerings to amass a Bitcoin treasury that has propelled its market capitalization beyond $100 billion. But TMTG's strategy comes with a crucial difference: unprecedented political alignment between corporate interests and federal policy.

The company's shares, which closed Friday at $25.72, now trade with a distinctive pattern—behaving as a high-beta Bitcoin tracker overlaid with political optionality. Analysis of recent trading data reveals the correlation between TMTG's daily returns and Bitcoin has strengthened dramatically, climbing from less than 0.2 before March to above 0.65 currently.

"When your company chairman is also the sitting president who's declared America will be the 'crypto capital of the world,' that creates a valuation premium the market is still struggling to quantify," explained a veteran cryptocurrency analyst at a major investment bank, speaking on background.

Beyond the Bitcoin Treasury

While Bitcoin acquisition appears to be the immediate focus, TMTG has broader ambitions in the cryptocurrency sector. According to regulatory filings and sources briefed on the company's strategy, plans include:

• Launching exchange-traded funds tracking Bitcoin and Cronos in partnership with Crypto.com
• Expanding the Trump family's existing crypto portfolio, which already includes significant stakes in World Liberty Financial, American Bitcoin mining operations, and the controversial $TRUMP and $MELANIA meme coins
• Positioning for potential cryptocurrency exchange operations, building on World Liberty Financial's decentralized exchange platform

If completed at the proposed terms, the capital raise would significantly transform TMTG's financial profile. The company would see its cash reserves swell from approximately $700 million to $3.7 billion, while its outstanding shares would increase by about 35% to nearly 298 million.

"At current Bitcoin prices of $109,500, the $3 billion would purchase approximately 27,400 Bitcoin," calculated a quantitative analyst who specializes in digital asset valuations. "That would immediately position TMTG among the top public company Bitcoin holders globally."

A Financial Transformation Under Intense Scrutiny

The fundraising push comes amid increasing scrutiny of the Trump family's rapidly expanding cryptocurrency interests, which now reportedly constitute nearly 40% of President Trump's estimated $7.25 billion net worth.

Since January, the Securities and Exchange Commission has paused investigations into multiple cryptocurrency companies, creating what critics characterize as a regulatory environment distinctly favorable to the president's business interests.

"The concern isn't just the potential conflicts of interest, but the precedent it sets for how digital assets are regulated going forward," said a former SEC enforcement attorney who now advises cryptocurrency companies. "We're seeing the largest revision of the crypto regulatory landscape in real-time, driven by executive influence rather than legislative process."

TMTG has neither confirmed nor denied the reported fundraising plans. When approached for comment, a company spokesperson criticized previous reporting on the matter without offering specific clarifications, stating only that certain media outlets "consistently rely on anonymous sources with political agendas."

Market Positioning and Investor Implications

For investors, TMTG presents a complex value proposition. The offering is expected to be conducted on at-the-market terms, with ClearStreet and BTIG reportedly among the potential underwriters.

Post-offering, TMTG would trade at approximately 2.6 times its Bitcoin holdings value, compared to MicroStrategy's current multiple of roughly 1.6 times. This premium reflects investors' willingness to pay for both the Bitcoin exposure and the perceived regulatory advantages of a Trump-affiliated entity.

"The question for institutional investors is whether that premium is justified given the underlying fundamentals," noted a portfolio manager at a $50 billion asset management firm. "Truth Social generated just $3.6 million in revenue against a $401 million GAAP loss for fiscal year 2024. The first quarter of 2025 remained unprofitable."

Donald Trump Jr. now oversees his father's 53% stake in TMTG, worth approximately $3 billion, through a revocable trust with sole investment and voting power over the shareholdings—an arrangement designed to address conflict of interest concerns while maintaining family control.

The Broader Trump Crypto Empire

The TMTG fundraising represents just one element of the Trump family's rapidly expanding cryptocurrency portfolio. In October 2024, the family launched World Liberty Financial, a decentralized cryptocurrency exchange where they maintain a 60% ownership stake and hold 22.5 billion $WLF tokens.

More recently, World Liberty Financial announced a $2 billion investment from Abu Dhabi-backed firm MGX in their stablecoin product USD1, described as the "single largest-ever investment in a crypto company." Those proceeds will reportedly be used to invest in Binance, one of the world's largest cryptocurrency exchanges.

Eric Trump serves as chief strategy officer for American Bitcoin, a mining operation that has benefited from the administration's pro-mining stance. Meanwhile, the $TRUMP and $MELANIA meme coins launched around inauguration have reportedly generated at least $349 million in fees.

Critical Timing and Market Impact

The timing of TMTG's planned announcement—potentially just before the 2025 Bitcoin Conference—appears strategically calculated. The Las Vegas event will feature Vice President JD Vance, Trump's sons, and his crypto advisor David Sachs alongside industry heavyweights like MicroStrategy's Michael Saylor.

Bitcoin recently reached a record high of $109,500, and many market observers see the TMTG announcement as potentially catalyzing further price action.

"When a sitting president's company makes a multi-billion-dollar bet on Bitcoin, that sends a powerful signal to both retail and institutional investors about the asset's legitimacy," said a cryptocurrency fund manager. "The conference could become a de facto endorsement of Bitcoin by the administration."

For TMTG shareholders, the immediate impact includes significant dilution—35% from the equity offering alone, with the convertible potentially adding another 30 million shares. However, if the Bitcoin strategy succeeds, the share price could still appreciate substantially despite the increased float.

As one veteran trader summarized: "TMTG is transforming from a media SPAC into a Bitcoin-denominated holding company with unprecedented political advantages. That's either the opportunity of a decade or a house of cards—and the market is still figuring out which."