Trump Media and Technology Group (TMTG), the company primarily owned by former U.S. President Donald Trump and operator of his Truth Social platform, announced on Friday that the U.S. Securities and Exchange Commission (SEC) has approved the registration for its Bitcoin treasury scheme. The approval will enable the company to utilize around $2.3 billion of raised capital from approximately 50 institutional investors to buy Bitcoin anytime.
Despite not revealing the exact amount of Bitcoin it intends to purchase, the company’s prospectus indicates that TMTG will decide on the quantity and timing of Bitcoin and Bitcoin-related purchases based on what it considers most beneficial.
The prospectus also features a universal shelf offering that grants the company the freedom to generate up to $12 billion via additional stock, debt, or warrants whenever desired. However, TMTG stated in a press release that it currently has no plans to issue any securities under the shelf registration.
About 84.7 million shares, roughly half of the public float and 30% of all outstanding shares held by early investors, are now registered for resale. TMTG’s stock trades on the Nasdaq exchange under the ticker DJT.
TMTG’s Bitcoin strategy could potentially involve buying Bitcoin-related securities or, under certain market conditions, selling Bitcoin and reinvesting the proceeds in other assets, such as cash, cash equivalents, or interest-bearing investments, as stated in the firm’s prospectus.
TMTG, apart from operating Truth Social, also runs the Truth+ streaming service. In January, it launched Truth.fi, a fintech brand with aspirations in the crypto sphere, touted as “a financial services and FinTech brand incorporating America First investment vehicles.”
Disclaimer: This article is purely informational and should not be taken as investment, financial, tax, or legal advice. Always do your own research before making any investment decisions.
