Trump family media company Trump Media and Technology Group (TMTG), the company behind Truth Social, wants to raise about $2 billion in new capital and another $1 billion through convertible bonds. These funds will be used to buy bitcoin and other cryptocurrencies, six insiders told the Financial Times. The publication added that the terms, conditions, and amounts are subject to change. The article was published on May 26.
TMTG representatives responded by saying that «apparently, the Financial Times has dumb writers listening to even dumber sources». Representatives of Donald Trump Jr. did not respond to the publication’s requests for comment. A White House spokesman declined to comment.
On May 27, a press release appeared on the official website of Trump Media and Technology Group. It states that the company will raise $2.5 billion to create a bitcoin treasury. TMTG has entered into agreements with approximately 50 institutional investors pursuant to which the Trump Company has agreed to issue and sell approximately $1.5 billion of common stock and $1 billion principal amount of 0.00% convertible senior secured notes, for gross proceeds of approximately $2.5 billion in a private placement.
Yorkville Securities, LLC and Clear Street LLC will act as joint lead placement agents and BTIG, LLC and Cohen & Company Capital Markets will act as co-management agents. Cantor Fitzgerald & Co. is acting as financial advisor. Nelson Mullins Riley & Scarborough LLP is acting as legal advisor. Reed Smith LLP is acting as legal counsel to the placement agents. Crypto.com and Anchorage Digital will manage Trump Media’s bitcoin wallet.
After winning the election last year, Trump transferred his 53% stake in TMTG, which is now worth about $3 billion, to a revocable trust overseen by his son Donald Jr.
Last week, Trump hosted a private gala dinner for 200 top investors in the TRUMP memecoin at his Trump National Golf Club estate near Washington, DC. The Wired publication criticized the dishes that were served there.
Earlier, The Financial Times reported that Trump Media and Technology Group is in talks to acquire cryptocurrency exchange Bakkt through the exchange of shares.
Source: TMTG, Financial Times
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