Trump Media and Technology Group (TMTG), which owns the Truth Social platform, said the US Securities and Exchange Commission (SEC) has approved its plan to invest in Bitcoin.

TMTG has raised around US$2.3 billion from 50 institutional investors for Bitcoin purchases but has not disclosed a timeline or total amount, citing market conditions.

The company also registered to potentially raise up to US$12 billion through stock, debt, or warrants but has no current plans to do so.

TMTG registered about 84.7 million shares held by early investors for resale, representing half of the public float and 30% of all outstanding shares.

The company’s Bitcoin strategy may involve purchasing Bitcoin-related securities or selling Bitcoin under specific market conditions.

Proceeds from these activities could potentially be reinvested in other assets, according to the prospectus.

🔗 Source: The Block

🧠 Food for thought

1️⃣ Corporate bitcoin treasury trend reaches MAGA-sphere after pioneering tech companies

Trump Media’s bitcoin treasury initiative follows a pattern established by tech firms seeking alternatives to cash holdings in low-interest environments.

MicroStrategy pioneered this approach in 2020, eventually acquiring over 226,000 bitcoin as a deliberate treasury management strategy and inflation hedge 1.

The $2.3 billion that Trump Media can now deploy toward bitcoin represents a significant potential market entry, especially compared to other public companies that have adopted similar strategies.

This move reflects a broader corporate trend where digital assets are increasingly viewed as balance sheet strengtheners rather than merely speculative investments, with companies implementing formal governance frameworks for managing these holdings 1.

Trump Media’s approach differs from earlier corporate adopters by combining its treasury strategy with fintech ambitions through its Truth.fi platform, potentially creating synergies between its holdings and consumer-facing products.

2️⃣ Trump’s journey from crypto skeptic to bitcoin treasury advocate

The bitcoin treasury plan represents a remarkable evolution in Trump’s public stance on cryptocurrencies since his presidency.