According to the Financial Times on May 27, the social media platform founded by former U.S. President Donald Trump, the Trump Media & Technology Group (TMTG), is planning to raise up to $3 billion to venture into the cryptocurrency field, especially Bitcoin.
Sources familiar with the deal reveal that TMTG plans to raise $2 billion through a new stock issuance and $1 billion through convertible bonds. If completed, this round of financing would be the largest capital operation since TMTG's inception, indicating a significant strategic shift towards the digital asset market.
However, the Financial Times noted that the financing terms, specific timeline, and final amount are still uncertain. Investors have not yet been finalized, and changes in market sentiment could also impact the financing plan.
When asked about the financing plan, TMTG did not respond directly but criticized the media, calling the Financial Times and Reuters "fake news." As of the time of publication, the White House had not responded to requests for comment.
This news comes at a time when Trump himself has shown a more positive attitude towards Bitcoin and other cryptocurrencies in public forums. Analysts suggest that TMTG's financing intention may indicate an attempt by the Trump camp to extend its political influence to the emerging fintech field, paving the way for consolidating the young conservative voter base, especially ahead of the 2024 election.
It is noteworthy that the Truth Social platform, operated by TMTG, is long viewed as a haven for right-wing social media, where a significant portion of its user base supports cryptocurrencies. This venture into the crypto asset space could further strengthen its connection with the digital asset community.
Currently, there is no public information on the specific cryptocurrency projects that the funds will be directed towards, but it is widely expected that Bitcoin will be a core asset. If the financing is successful, it may also encourage more conservative capital to enter the field.
