Trump Media and Technology Group (DJT), the publicly-traded company that operates the social media site Truth Social, announced on Tuesday a $2.5 billion capital raise to create a bitcoin BTC treasury.
The company has entered into subscription agreement with about 50 institutional investors, issuing $1.5 billion in common stock and $1 billion in convertible senior secured notes, according to a press release. The offering is expected to close on May 29. Crypto.com and Anchorage Digital will provide custody services for the firm’s BTC holding.
The story was initially reported on Monday by the Financial Times.
DJT jumped more than 10% in premarket action, but has turned modestly lower in early regular session trading. Bitcoin is marginally higher, trading just above $110,000.