The Trump Media Group has made headway in its plans to create a Bitcoin Treasury Reserve. The company has just announced that it has completed its stock sale, resulting in a capital raise of almost $2.5 billion, which it intends to use to purchase BTC.
Trump Media Finalizes Bitcoin Treasury Deal
In a press release, the company owned by President Donald Trump announced that it has closed its private placement offering with almost 50 institutional investors as part of its plans to create a Bitcoin Treasury Reserve.
Trump Media revealed that the offering consisted of the sale of around 55.8 million shares of the company’s common stock and 0.00% convertible senior notes due 2028, which led to a capital raise of $1.44 billion and $1 billion, respectively. This amounts to $2.44 billion, which is just short of the $2.5 billion that the company intended to raise.
As CoinGape earlier reported, the company had entered into a subscription agreement with these investors to raise $1.5 billion from the stock sales and $1 billion from the convertible senior secured notes.
Trump Media stated that it will use almost $2.32 billion in net proceeds from the offering to create a Bitcoin treasury and for other general corporate purposes and working capital. This will make them one of the top Bitcoin holders among US public companies. Meanwhile, the company also revealed that crypto exchange Crypto.com and Anchorage Digital will provide custody for their Bitcoin Treasury.
Other companies and organizations are also warming up towards the idea of a Bitcoin Reserve. As CoinGape reported, Champions League finalists PSG just announced that they hold BTC as a reserve asset. Furthermore, Tether-backed Twenty One Capital just raised $100 million to buy more Bitcoin.
Boluwatife Adeyemi
Boluwatife Adeyemi is a well-experienced crypto news writer and editor who has covered topics that cut across several topics and niches. Boluwatife has a knack for simplifying the most technical concepts and making it easy for crypto newbies to understand. Away from writing, He is an avid basketball lover, a traveler and a part-time degen.
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