DJ Shaw
2 min read
Trump Media & Technology Group Corp. (DJT) filed a registration statement with the Securities and Exchange Commission for its $2.5 billion Bitcoin treasury strategy, according to a company announcement.
The move represents what Trump Media calls one of the largest corporate Bitcoin allocations by a public company and signals the company's expansion beyond social media into financial services, according to the press release. Corporate Bitcoin strategies have gained traction following similar moves by companies like Strategy Inc. (MSTR), which holds over $41.6 billion in Bitcoin as of May 25, the company said.
The registration statement will provide Trump Media with "the capital, assets, independence, flexibility, and security we need to fulfill our goals of rapid expansion, guaranteeing a wide array of ways to access the capital markets when it's most advantageous to do so," according to the Friday press release.
The company entered subscription agreements for $1.5 billion in common stock and $1 billion in convertible notes, according to the filing. Trump Media shares were up about 4.7% Friday morning but remain down 38% year to date.
The proceeds will be used for the company's creation of a Bitcoin treasury and for general corporate purposes, according to the press release.
Read More: Trump Media Raises $2.5B for Bitcoin Treasury Strategy
The registration statement seeks to register for resale by selling security holders up to 84.6 million shares of common stock, according to the filing. The shares represent approximately 52.8% of Trump Media's public float and approximately 30.6% of outstanding shares as of June 4, according to the filing.
The filing also allows for a primary offering of up to $12 billion in various securities, including common stock, preferred stock, debt securities, warrants, rights and units, according to the registration statement. This universal shelf registration provides Trump Media flexibility to access capital markets when conditions are favorable.
CEO Devin Nunes said the activities will help the company "acquire crown jewel assets, and draw more customers and users into the patriot economy," according to the press release.
The company operates Truth Social, the Truth+ streaming platform and is launching the Truth.Fi financial services brand, according to the press release. The broader strategy includes trademark filings for three Truth.Fi ETFs combining digital assets with "Made in America" securities, according to previous filings.
