Trump Media plans $2.5 billion bitcoin reserve despite stock drop

In the United States, on May 27, 2025, Trump Media and Technology Group announced a significant financial move, aimed at creating a bitcoin reserve through a substantial investment. Institutional investors agreed to purchase $2.5 billion in the company’s stock, a strategy intended to shield the firm from perceived discrimination by financial institutions against conservative entities. The arrangement includes $1.5 billion in common stock equity and $1 billion in convertible notes. This initiative underscores a broader trend among companies aligning with politically conservative ideologies to shift their corporate treasuries towards cryptocurrency, echoing strategies utilized by other firms in the sector. CEO Devin Nunes characterized bitcoin as a pivotal asset, referring to it as a “crown jewel” in their financial strategy. The company’s commitment to establishing a bitcoin treasury is intended not only to enhance its financial standing but also serve as a defensive maneuver against what it claims is systemic discrimination by the banking sector. Furthermore, Trump Media’s previous infrastructure investments and partnerships, notably with Anchorage Digital and Crypto.com for asset custody, contribute to its entry into a rapidly evolving market. These moves come in the context of rising bitcoin values and heightened interest in cryptocurrencies, especially as the Bitcoin 2025 conference takes place in Las Vegas. In fact, Trump himself has shifted his public stance on cryptocurrencies, having once labeled them as unreliable due to their volatility. During his prior presidential campaign, he expressed the need for support from the crypto community, which highlights the changing relationship between political leaders and the burgeoning blockchain technology. Trump Media's strategy aims to not only utilize the popularity of bitcoin but also to fuel its election campaign efforts, leveraging its growing network of supporters in the cryptocurrency community. Although this financial move signifies an ambitious pivot for Trump Media, the decision comes as shares fell by 10%, drawing skepticism over the firm's operational losses reported in the previous year. In contrast, the move illustrates a possible pathway for aligning political narratives with financial strategies in an increasingly polarized economic environment.