Trump Media Technology Group (DJT.O) performed outstandingly in pre-market trading on the US stock market, with its share price rising by more than 7%. This upward trend stems from the disclosure of a major plan by the company – it intends to raise 3 billion US dollars to invest in the cryptocurrency sector.
According to multiple people familiar with the matter, the Trump Media and Technology Group (TMTG, often referred to as DJT by investors), which is controlled by the Trump family, has a rather ambitious financing plan this time. The company plans to raise 2 billion US dollars through new share issuance and raise another 1 billion US dollars by means of convertible bonds at the same time. The Social media platform Truth Social is precisely the core product of the company. Currently, DJT is actively exploring potential merger and acquisition opportunities, attempting to expand its business territory into the financial services sector. Investing in cryptocurrencies is a key step in its layout.
Last month, DJT reached a binding agreement and plans to launch a variety of retail investment products, among which cryptocurrency-related exchange-traded funds (ETFs) are the main focus. The 3 billion US dollars to be raised this time, once implemented, will mainly be used to purchase cryptocurrencies such as Bitcoin. This move by the Trump family can be regarded as another major step for them to enter the cryptocurrency field. However, it has also raised widespread concerns about conflicts of interest from the outside world. After all, Trump’s supportive attitude towards cryptocurrencies has already driven a trading boom in related assets. Last week, the price of Bitcoin even broke through the $110,000 per coin mark for the first time.
In fact, this financing strategy of DJT is not original. The largest corporate holder of Bitcoin, Strategy (formerly MicroStrategy), had previously raised funds by issuing bonds and stocks to purchase tens of billions of dollars worth of Bitcoin, successfully driving its market value to soar to over 100 billion US dollars. This time, DJT follows this model, hoping to explore new growth paths for the company through cryptocurrency investment.
It is learned that this financing plan may be officially announced before a large-scale cryptocurrency investor conference to be held in Las Vegas this week. People familiar with the plan said that due to strong market demand, the financing scale has expanded in recent weeks. After Trump was re-elected president, he transferred approximately 53% of his shares in DJT (currently worth about 3 billion US dollars) to a revocable trust fund, which was managed by his son Donald Jr.. Donald Jr. had the sole voting rights and investment rights in the securities he held. This series of actions all demonstrate the Trump family’s vigorous ambition in the cryptocurrency field, and the market has responded positively to DJT’s strategic shift. The significant rise in pre-market US stock prices is clear evidence of this. Subsequently, as the financing plan progresses and the investment in cryptocurrencies is implemented, the performance of Trump Media Technology Group in the capital market and the cryptocurrency field will undoubtedly continue to attract attention from all sectors.
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