Trump Media & Technology Group Corp. (TMTG), a company owned by President Donald Trump, has obtained approval from the U.S. Securities and Exchange Commission (SEC) to issue securities that will fund, among other initiatives, the creation of a Bitcoin (BTC) treasury.
The company announced that its registration statement on Form S-3 has been declared effective by the SEC, allowing TMTG to proceed with the issuance of common stock and convertible debt to raise funds. These funds, amounting to approximately USD 2.3 billion, are derived from agreements with approximately 50 institutional investors and will be used in part to establish a bitcoin treasury, among other corporate purposes.
Specifically, TMTG has sold 55.86 million common shares at $25.72 each and $1 billion in convertible notes with a conversion price of $34.72 per share. These financial instruments, now registered and approved by the SEC, will allow the company to advance its strategy of integrating bitcoin as a key asset into its balance sheet.
This move positions TMTG as another notable public entity incorporating BTC into its financial strategy, fueling the growing trend of companies that have recognized the digital asset's potential as a store of value and part of a modern financial infrastructure. Devin Nunes, CEO of Trump Media & Technology Group Corp., stated:
“We are aggressively implementing our plans to expand the company, our offerings, and our capabilities. Through the simultaneous enhancement and expansion of our social media platforms, television streaming, and our FinTech brand by establishing a Bitcoin treasury, we aim to continue rapidly transforming Trump Media into an indispensable company for the growing customer base of the Patriot Economy.”
Devin Nunes, CEO of Trump Media & Technology Group Corp
The inclusion of Bitcoin in the treasury of a company linked to a high-profile political figure like Donald Trump is a significant indicator of BTC's growing acceptance and legitimacy in the corporate and political landscape. This could not only generate greater interest and confidence in the cryptocurrency market, but also set a precedent for other corporations looking to diversify their reserves and capitalize on Bitcoin's value proposition.
While the registration statement offers flexibility for the company's future growth without immediate plans to issue additional securities, the confirmation of the BTC strategy is a testament to the changing landscape of corporate finance. This step underscores how Satoshi Nakamoto's digital currency is transcending its initial status to become a strategic asset considered by companies across a variety of sectors.
In this regard, Michael Saylor, CEO of Strategy and a pioneer in institutional Bitcoin treasury strategy, commented in a recent interview that the support of former President Trump and his cabinet for Bitcoin is evidence that the currency will continue to rise "toward a million dollars."
