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yesterday

Trump Media’s $2.5B Bitcoin Bid Sends Shares Tumbling

The proposed funding round could dilute the Trump family’s majority control, fueling investor unease over the company’s persistent losses alongside governance risks.

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Overview

  • On May 27, Trump Media unveiled a $2.5 billion plan to build a Bitcoin treasury by issuing $1.5 billion in new common stock and $1 billion in zero-coupon convertible notes.
  • Shares plunged more than 15% on Tuesday and fell further Wednesday, leaving DJT stock down over 33% year-to-date as investors questioned the pivot.
  • The share issuance will drop the Trump family’s stake below 50% under a one-share-one-vote structure while the company reported a $31.7 million net loss in Q1.
  • CEO Devin Nunes said the Bitcoin reserve is meant to shield the company from financial discrimination and support future crypto offerings across its platforms.
  • Critics from economist Peter Schiff to commentator Ben Shapiro flagged conflicts of interest and “skeezy” tactics, even as Donald Trump Jr. reaffirmed an exclusively Bitcoin-focused strategy.