London, UK – Shares in Trump Media & Technology Group (DJT) experienced a significant uplift on Monday, climbing over 5% after the company revealed it had acquired approximately £1.6 billion ($2 billion USD) worth of Bitcoin (BTC-USD) and related securities. This move, reported by news outlets including Yahoo Finance, marks a substantial step in the media conglomerate's previously announced strategy to become a Bitcoin treasury company.
A Strategic Shift Towards Digital Assets
Trump Media, which operates President Donald Trump's social media platform Truth Social, alongside streaming service Truth+ and financial brand Truth.Fi, disclosed in May its intention to build a Bitcoin treasury. According to a company statement, these recent purchases mean that the world's largest cryptocurrency now constitutes two-thirds of its total £2.4 billion ($3 billion USD) in assets.
Devin Nunes, CEO and President of Trump Media, was quoted in a press release stating, "We're rigorously implementing our publicly announced strategy and fulfilling our bitcoin treasury plan.These assets help ensure our company's financial freedom, help protect us against discrimination by financial institutions, and will create synergies with the utility token we're planning to introduce across the Truth Social ecosphere."
The company further indicated an allocation of an additional £240 million ($300 million USD) towards an "options acquisition strategy for bitcoin related securities."
The acquisition by Trump Media comes as President Donald Trump deepens his financial involvement in the cryptocurrency sector, coinciding with new legislation in Washington D.C. aimed at providing a more favourable regulatory environment for the industry.
On Friday, President Donald Trump reportedly signed into law a bill establishing the first federal framework for dollar-backed stablecoins. This legislation, which gives these US dollar-backed digital assets a significant endorsement, is anticipated to encourage wider adoption. AFP via Getty Images captured the moment, with a photograph by Brendan Smialowski showing President Donald Trump signing the GENIUS Act, which codifies the use of stablecoins.
Further demonstrating this expanding involvement, World Liberty Financial, a new crypto start-up backed by President Donald Trump and his sons, has already launched its own US-dollar-pegged stablecoin (USD1) in collaboration with BitGo.
The Rise of Bitcoin Treasury Companies
Trump Media's plans, first announced in May, to raise £2 billion ($2.5 billion USD) to establish a Bitcoin treasury reflect a growing trend among crypto entrepreneurs. This strategy, which involves using a combination of public equity and debt issuance to acquire Bitcoin more rapidly, was notably pioneered by Michael Saylor's MicroStrategy (MSTR).
Beginning in 2020, Saylor transformed his business intelligence software firm into a Bitcoin powerhouse by accumulating as much of the world's largest cryptocurrency as possible on his company's balance sheet. Dozens of other companies have since followed this model, including some with backing from family members of White House advisors. Others are also seeking to stockpile crypto assets beyond Bitcoin, such as Ether, the second-largest cryptocurrency.
