Trump’s $3B Bitcoin Bet: Is This the Future or Just Another Odd Investment?

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Ah, the ever-ambitious Trump Media and Technology Group – the clever chaps behind the spectacularly “social” Truth Social platform – are reportedly planning to raise a cool $3 billion. How, you ask? Well, through a delightful mix of equity and convertible bonds to buy Bitcoin and a hodgepodge of other cryptocurrencies. Sounds like a wise move, doesn’t it? Almost like tossing a bucket of spaghetti at the wall to see what sticks. A recent scoop from the Financial Times assures us of this, though, so it must be true. 😏

The plan, as convoluted as a game of hopscotch in a hurricane, involves issuing $2 billion in equity and $1 billion in convertible bonds. Now, don’t go rolling your eyes – these bonds can be converted into equity later on. Of course, the size of the whole affair might change, but that’s a detail we’ll leave to those in the know. 😬

The equity will be sold at market price on May 23 – that’s a nifty $25.72 per share, a thrilling 4.6% increase on the day. Fancy, eh? It’s a market cap of $5.7 billion as of the same date, which is about as much as most small countries are worth, but we digress. 📈

Trump Media, in its infinite wisdom, is following in the footsteps of illustrious crypto moguls like Strategy, Metaplanet, and Semler Scientific. Apparently, the goal here is to use some of that sweet, sweet money to buy Bitcoin (BTC) as a hedge against inflation. Or, perhaps, to avoid becoming a “zombie company.” Who knew Bitcoin could act as the corporate equivalent of a magic potion? 🧙‍♂️

Hold On to Your Hats: Trump Media May Be Under the Microscope

But wait – there’s more! This move is likely to stir up more than a few feathers. Yes, we’re talking about extra scrutiny on the Trump family’s growing crypto empire. The Democrats, as you might expect, aren’t exactly thrilled about this latest venture, and there’s been some pushback against bipartisan bills related to the Trump crypto dealings. On May 22, we saw protests against the “memecoin dinner” Trump hosted. 🍽️ You can’t make this stuff up!

Trump’s crypto exploits already include a host of exciting ventures like non-fungible token collections (TRUMP and MELANIA), memecoins, a decentralized finance platform called World Liberty Financial, and, of course, a dollar-pegged stablecoin. Critics, naturally, are wringing their hands about conflicts of interest. After all, what could possibly go wrong when the guy pulling the strings might stand to profit from the very industry he’s overseeing? 🤔

And for the cherry on top, the report claims that Trump has transferred his 53% share in Trump Media and Technology to a trust managed by none other than his son, Donald Trump Jr. Because, why not? We’re all family here, right? 🤷‍♂️

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2025-05-26 21:47