Trump Media Group denies it’s raising $3B for crypto buys: Report

Trump Media and Technology Group (TMTG), the parent company of former President Donald Trump’s Truth Social platform, has denied plans to raise $3 billion through equity and convertible bonds to invest in Bitcoin and other cryptocurrencies. This denial follows a Financial Times report citing six unnamed sources who claimed TMTG intended to raise $2 billion in equity and $1 billion in convertible bonds. The equity offering was reportedly planned at the May 23rd closing price of $25.72 per share, representing a 4.6% daily increase. TMTG’s market capitalization stood at $5.7 billion on that date.

TMTG’s statement dismissing the report was dismissive, characterizing the Financial Times’ sources as “dumb.” While the company did not immediately respond to Cointelegraph’s request for comment, the denial directly contradicts the Financial Times’ reporting.

Had the plan proceeded, it would have mirrored the strategies of companies like Strategy, Metaplanet, and Semler Scientific, which have allocated portions of their funds to Bitcoin as a hedge against inflation and to avoid becoming “zombie companies.”

This potential investment, now denied, raises further scrutiny on the Trump family’s expanding crypto activities. Democratic lawmakers have already voiced concerns over potential conflicts of interest related to the family’s involvement in various crypto ventures. These ventures include the Official Trump (TRUMP) and Melania (MELANIA) memecoins, the World Liberty Financial decentralized finance platform, and a dollar-pegged stablecoin. Critics highlight the potential conflict of interest arising from the Trump family’s ability to profit from an industry potentially influenced by the former president.

The Financial Times report also indicated that Trump transferred his 53% stake in TMTG to a revocable trust managed by his son, Donald Trump Jr. This transfer further complicates the discussion surrounding potential conflicts of interest and insider trading concerns within the Trump family’s crypto dealings. The situation remains fluid, pending further clarification from TMTG. The denial, however, significantly alters the narrative surrounding the company’s potential foray into the cryptocurrency market.