The Trump Media & Technology Group, which oversees the social media platform Truth Social, is reportedly aiming to secure approximately $3 billion to expand its investment portfolio into cryptocurrencies, prominently including Bitcoin (BTC).
As cited in a recent report by the Financial Times, the company is seeking to arrange $2 billion in new equity along with $1 billion through a convertible bond. While these figures are ambitious, the specifics regarding the timing and structure of this capital raise may be subject to alterations.
Trump Media’s Response to the Allegations
In light of the report, the President’s media firm dismissed double criticism from both Reuters and the Financial Times, labeling the stories as “fake news.” On the other hand, the White House has yet to release any statements on this developing situation.
The company appears to be branching out by evaluating potential mergers and acquisitions within the financial sector, indicating a noteworthy transition from its primary focus on social media.
Recently, Trump Media finalized an agreement to launch a range of retail investment solutions, in line with Trump’s America First ideology.
The offerings are expected to encompass cryptocurrency investments and Exchange-Traded Funds (ETFs). However, this initiative has triggered scrutiny from regulatory bodies and ethical watchdogs.
The proposed capital raise, which remains unconfirmed by the President’s task force, is timed with a significant gathering of cryptocurrency enthusiasts and investors this week, featuring notable appearances from figures like Vice President JD Vance and Trump’s sons, Donald Jr. and Eric.
Public Outcry Over Cryptocurrency Gathering
This event follows an exclusive dinner hosted by President Trump for leading investors in his cryptocurrency venture, the TRUMP memecoin, at his golf course near Washington, D.C.
The gathering drew around 220 prominent buyers of the TRUMP memecoin, which was introduced just days prior to Trump’s inauguration.
Critics have decried the dinner as a stark representation of corruption and conflicts of interest, with protestors demonstrating outside the venue holding signs that read “end crypto corruption” and “no monarchs.”
Democratic Senator Elizabeth Warren and other opponents publicly denounced the dinner at a press conference, labeling it an “alliance of corruption.”
The ethical ramifications of Trump’s forays into the cryptocurrency arena have sparked intense debates among critics, particularly with regard to the blending of political power and personal gain.
In addition to Trump’s investments, his family has also ventured deeply into the cryptocurrency landscape. Donald Jr. and Eric Trump are exploring diverse projects, including a new Bitcoin mining enterprise named American Bitcoin, in partnership with Hut 8.
As this story unfolds, Bitcoin, the leading cryptocurrency, is trading at just over the $109,400 mark, understandably showing a significant 15% increase over the past month.
In contrast, the President’s official memecoin reflects a decline of 19%, trading down to $12.71, indicating that the exclusive dinner failed to enhance market interest in the token.
Image credit: CNBC, data sourced from TradingView.com.
