US President Donald Trump's social media company announced Tuesday its plans to raise about $2.5 billion with an eye to creating a "bitcoin treasury" and said cryptocurrency will be a key part of its assets.
Trump Media & Technology Group, which operates the Truth Social site, said in a statement that it has entered into subscription deals with around 50 institutional investors.
Under these agreements, the company agreed to issue and sell about $1.5 billion in common stock and $1.0 billion in convertible senior secured notes, in a private placement offering.
The offering is anticipated to close on or about May 29, the company said. Its stock price slumped by 11 percent in morning trading.
"We view Bitcoin as an apex instrument of financial freedom, and now Trump Media will hold cryptocurrency as a crucial part of our assets," said Trump Media CEO Devin Nunes.
He added that the investment will "help defend our Company against harassment and discrimination by financial institutions."
The firm also said it aims to expand its reach "throughout the America First economy," adding that Crypto.com and Anchorage Digital will provide custody for its bitcoin treasury.
{{/usCountry}}The firm also said it aims to expand its reach "throughout the America First economy," adding that Crypto.com and Anchorage Digital will provide custody for its bitcoin treasury.
{{/usCountry}}Trump has vowed to make the United States the "crypto capital of the world."
Trump's newfound enthusiasm for digital currencies has expanded into multiple ventures led primarily by his eldest sons.