Trump Media's $2.5B Bitcoin Treasure Might Shift Market Dynamics

The Trump Media & Technology Group (TMTG), parent of Truth Social, announced plans to raise $1.5 billion through common stock issuance and $1 billion via convertible bonds to establish a Bitcoin treasury. The funding will be secured from approximately 50 institutional investors. This move is seen as the culmination of financial independence. However, analysts are concerned about the sustainability of this approach, drawing parallels with other organizations pursuing similar strategies. Critics argue that such actions could introduce financial risks and dilute shareholder ownership. Cantor Fitzgerald is serving as the financial advisor for the deal, with Crypto.com and Anchorage Digital acting as custodians for the Bitcoin holdings. According to reports, TMTG will join 113 other companies implementing Bitcoin accumulation strategies, potentially increasing the proportion of Bitcoin on public companies' balance sheets to 50% by 2045. The growing number of companies adopting Bitcoin strategies raises concerns among experts, who forecast possible shifts in market dynamics.