Trump Media Group has announced plans to establish a $2.5 billion Bitcoin Treasury Department
Trump Media and Technology Group (TMTG) is now available Media Company The family of the US president has taken control and announced plans to purchase $2.5 billion worth Bitcoin on tuesday.
The company, which runs the Trump social media platform, True Social, raises funds for the purchase by providing $1.5 billion worth of stock and $1 billion worth of debt funding to $50 unnamed institutional investors. statement It was released on Tuesday.
The $2.5 billion, which means more than 22,500 tokens at the current price of Bitcoin, amounting to $110,000, will be used to create the “Bitcoin Treasury.” The Bitcoin Treasury is a long-term stockpile of cryptocurrency held by the government or company, often intended to diversify the assets of an entity and hedge against inflation.
“We view Bitcoin as a pinnacle of financial freedom, and Trump Media holds cryptocurrency as a key part of our assets,” TMTG CEO and former MP Devin Nunes said in a statement.
TMTG’s investment will become the third largest corporate holder of Bitcoin, with crypto mining company Mara with $63 billion worth of Bitcoin and $5 billion worth of Bitcoin, after Michael Saylor’s company strategy.
Here’s the news of TMTG’s pending investments The company refused a Financial Times Report On Monday, he plans to buy $3 billion worth of Bitcoin, during which he called the FT a “fake news” outlet.
This is not TMTG’s first foray into the crypto industry. In March, the company announced that it would partner with Crypto Exchange. crypto.com Launch exchange trade funds to allow investors to access the stock market to move prices of cryptocurrencies and other traditional securities.
The concept of holding the “Bitcoin Treasury” is popular among entities close to the president. In March, Trump signed Presidential Order Establishing the nation Bitcoin Reserve For the US government, composed of codes seized from illegal activities by the government to exploit the “power of digital assets for the prosperity of the nation.”
More recently, Cantor Fitzgerald, a financial services company previously led by US Secretary of Commerce Howard Lutnick, has announced partnerships with other companies, including Stablecoin Giant Tether, and launched a new entity called. 21 capitals. The company plans to hold 42,000 Bitcoin when it is finally revealed, and is trying to serve as an investment vehicle for people and businesses looking to access the Bitcoin price movement.
This story was originally introduced Fortune.com