Trump Media to Acquire Bitcoin with $2.32 Billion Capital Raise
Donald Trump’s media company, Trump Media and Technology Group (NASDAQ: TMTG), has announced a significant capital raise of $2.32 billion. The company intends to use these funds to acquire Bitcoin and bolster its financial position.
In a statement released on Friday, TMTG revealed its plans to allocate the net proceeds from the offering, approximately $2.32 billion, towards establishing a Bitcoin treasury and for general corporate purposes, including working capital.
This strategic move positions TMTG to potentially become one of the largest corporate holders of Bitcoin among publicly traded companies.
Details of the Capital Raise
The capital raise involved the sale of 55,857,181 shares of the Company’s common stock to 50 institutional investors at a price of $25.72 per share, generating gross proceeds of approximately $1.44 billion.
Additionally, the company issued 0.00% senior secured convertible notes due in 2028, with a principal amount of $1.00 billion, at a conversion price of $34.72 per share, resulting in a total purchase price of approximately $2.44 billion.
CEO and Chairman of Trump Media, Devin Nunes, emphasized the company’s focus on acquiring substantial assets.
“Trump Media is focused on acquiring large assets, and this deal will give us the financial freedom to implement the rest of our strategies. This means the company will have over $3 billion in liquid assets, and our shareholders will have exposure to Bitcoin. The deal positions Trump Media for the kind of rapid expansion we have always envisioned, and we look forward to further advancing the America First economy.”
Yorkville Securities, LLC and Clear Street LLC served as co-lead placement agents, with BTIG, LLC and Cohen & Company Capital Markets acting as co-placement agents. Cantor Fitzgerald & Co. acted as financial advisor.
Nelson Mullins Riley & Scarborough LLP served as legal counsel to TMTG, while Reed Smith LLP served as legal counsel to the Placement Agents.
Custody of Bitcoin Holdings
Crypto.com and Anchorage Digital will provide custody services for Trump Media’s Bitcoin treasury.
TMTG is also reportedly planning to launch a Bitcoin ETF, a move that could be facilitated by this new acquisition.
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