Simply put
- Trump Media announced on Monday that it has acquired $2 billion in Bitcoin.
- The company had already revealed its strategy for Bitcoin acquisition back in May.
- Since the announcement, Trump Media’s stock has risen by approximately 6%.
Trump Media and Technology Group has officially bought $2 billion in Bitcoin and related securities for its Corporate Treasury Department, as stated on Monday.
A representative of the company mentioned that the publicly disclosed Bitcoin holdings represent a significant portion of its $3 billion in liquid assets. The company aims to utilize Bitcoin to possibly generate revenue and expand its crypto asset portfolio.
“These assets will ensure our financial freedom, protect us from discrimination by financial institutions, and create synergy with utility tokens we plan to launch within our social platforms,” said Devin Nunes, CEO and President of Trump Media, in a statement.
Trump Media hasn’t yet responded to inquiries regarding which other cryptocurrencies it is considering.
Trump Media was the first to announce its plans to invest over $2 billion in Bitcoin back in May.
Currently, Bitcoin is trading at around $118,908, showing a slight increase of 0.3% in the last 24 hours, according to sources.
Additionally, the owners of True Social plan to allocate another $300 million for options on Bitcoin-related securities as per the latest information.
This investment marks a notable move for Trump Media into the cryptocurrency space, which has ties to the Trump family’s involvement during Donald Trump’s presidency.
Last year, President Trump’s sons, Eric and Donald Jr., supported a crypto venture called World Liberty Financial. Eric Trump also co-founded American Bitcoin, which has accumulated more than $20 million in Bitcoin since launching in April.
In January, President Trump launched Mimecoin, leading to some public controversies, and later he introduced an official NFT collection in 2022, despite facing several downturns in the market.
During Trump’s administration, the family backed various cryptocurrency initiatives while also establishing regulations concerning digital assets. Trump signed a regulatory framework on Friday, marking a significant step in formalizing crypto-related laws in the U.S., with additional legislation anticipated later this year.
In recent months, a crypto regulator has been appointed as the SEC chair, alongside the increasing presence of officials supportive of digital assets within regulatory bodies.
As per SEC filings, Trump Media reported a net loss of $400 million since its inception in 2021.
At the time of this report, Trump Media stocks were priced at $19.78, having risen by 6% in the past 24 hours but down by 43% over the year.
