Trump Media Eyes Multi-Billion Bitcoin Bet

In a significant development for cryptocurrencies, the company owned by the US President is poised to join the ranks of the largest corporate holders of Bitcoin.

A Digital Golden Opportunity

Trump Media, the holding company of US President Donald Trump's social media platform, Truth Social, is looking to diversify its income sources by. On Tuesday, the company took steps to raise up to $2.5 billion to invest in Bitcoin, adding BTC to its balance sheet. The funding would come from a $1.5 billion share offering and $1 billion in new convertible debt. At current prices, if all the funds were used to buy up Bitcoin, it would make Trump Media the.

While stocking up on Bitcoin has become a popular strategy among certain tech companies (MicroStrategy), with the move, with the shares taking a 10% dip after the announcement and continuing to trend lower since. However, this reaction might be attributed more to the company's proposal to sell over 25% of its market cap (at pre-announcement prices) in shares rather than the cryptocurrency aspect itself.

Beyond Trump Media

The move comes amid heightened political interest in crypto, as the Trump Administration is perceived as favourable towards low regulation of the sector. Additionally, the President hosted an, including those who had invested in the Trump family's cryptocurrency platform and his signature $TRUMP coin. The Trump Administration's wholehearted embrace of Bitcoin contrasts with its predecessor's efforts to regulate Wall Street's activity in the arena and supports the government holding Bitcoin reserves. The Vice President,, having headlined the Bitcoin 2025 conference.

With at least two members of the under the leadership of Michael Saylor, who transformed a tech firm into a primarily digital financial holding company, the race to buy cryptocurrencies appears to be back on. Last week, Bitcoin reached an all-time high of around $112K but has since slid lower, likely forming a pullback. Ironically, the economic uncertainty in the US resulting from tariffs has supported the coin as individuals resort to dollar alternatives, and positive developments in the trade situation have coincided with a reversal in Bitcoin. With the backing of the Executive branch, traders are now likely to look to the Federal Reserve to lower borrowing costs, making investments in higher-risk assets, such as cryptos, more appealing.

BTC C&H Could Boost MSTR, DJT

Notably, Bitcoin and MicroStrategy have peaked around the same time last year ($110k vs. $550) and bottomed out in April on the same exact date (75k vs. $230). However, MicroStrategy's upside has not produced new records like Bitcoin. Yet, the company has outperformed the Nasdaq this year, which trades nearly flat YTD, as its treasury strategy has attracted proponents of Saylor's BTC strategy (MSTR: ~30% YTD). If Bitcoin continues to new highs after forming a potential handle near the 100k, assuming a cup and handle pattern does form, MicroStrategy might follow suit, and with it, DJT. DJT and Trump Media may hope to achieve similar gains to MicroStrategy, especially since DJT stock trades poorly. MSTR has critical support at $350, with a breakdown suggesting sideways trading or additional declines.

Source: SpreadEx BTC vs. MSTR

Key Takeaways

Trump Media's decision to raise $2.5 billion to invest in Bitcoin is a bold move aimed at diversifying the company’s income sources and capitalising on the cryptocurrency's potential in a similar manner to MicroStrategy. While the move has drawn mixed reactions from investors, it aligns with the growing trend of companies adding Bitcoin to their balance sheets. However, the success of this endeavour will likely hinge on Bitcoin's performance and the company's ability to execute its plan effectively, as MicroStrategy has done.