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In what is nothing short of a debilitating blow to the credibility of Trump Media and Technology Group's IR department, the company is now implementing the plan of action delineated within a Financial Times report, and that too, after having slammed the said report as "dumb" and "fake news" just a few hours earlier.
For the benefit of those who might not be aware, the Financial Times reported yesterday that Trump Media and Technology Group was preparing to raise $3 billion in new capital to invest in cryptocurrencies, with $2 billion reportedly being raised via the equity financing route, and another $1 billion via convertible notes.
According to the British paper, Trump Media was preparing to announce its new capital raise exercise ahead of this week's Bitcoin 2025 Las Vegas event.
In response, however, Trump Media and Technology Group's IR department had unequivocally slammed the report on Monday:
"Apparently the Financial Times has dumb writers listening to even dumber sources."
What's more, when Reuters reached out to corroborate the Financial Times' story, Trump Media went so far as to slam both the Financial Times and Reuters as "fake news" outlets.
Well, just a day later, the "fake news" outlets have been vindicated. To wit, Trump Media and Technology Group has now announced that it has entered into subscription agreements with around 50 institutional investors, whereby the company will raise ~$1.5 billion by selling its common stock to these investors, and another $1 billion by issuing convertible senior secured notes.
The company expects to close this offering by the 29th of May, entailing gross proceeds of around $2.5 billion.
Critically, Trump Media and Technology Group intends to use these proceeds to establish a Bitcoin treasury, constituting the culmination of a strategic acquisition fund - approved earlier by Trump Media's board - that was to explore "opportunities to partner, merge with and/or acquire other participants in the growing America First Economy ..."
Bear in mind that Trump Media's board approved back in January the diversion of up to $250 million towards setting up customized SMAs and ETFs under the Truth.Fi brand. In April, Trump Media officially launched this service in partnership with the asset management firm, Yorkville America Equities, and the provider of thematic investment solutions, Index Technologies Group.
About the author: Writing is my one incontrovertible passion. Over the past six years, he has authored over 2,200 distinct articles on financial and tech-related topics, spanning nearly 1 million words. And he has been a member of Wcctech mobile team since 2025. As an alumnus of the University of Toronto, Rotman Commerce Program, I bring nuance, in-depth knowledge, and a unique perspective to every topic that I cover. When I'm not writing, I'm traveling the world, exploring hidden confectionaries and restaurants as an aspiring food connoisseur.
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