- Trump Media & Technology Group may seek to raise $2 billion to invest in Bitcoin, following a model used by MicroStrategy.
- The company responded critically to reports about its investment plans, while ownership is held in a trust controlled by Donald Trump Jr.
- Raising capital through convertible bonds to buy Bitcoin has drawn attention for inflating company values and involves risks if market trends shift.
- Democratic Senators want to bar presidential involvement in stablecoins like USD1, citing ethical and regulatory concerns linked to the Trump family.
- Most surveyed readers consider these activities a conflict of interest, though concern has declined over time.
Trump Media & Technology Group, the company behind the Truth Social app, plans to raise funds to invest in Bitcoin, according to recent reporting from the Financial Times. The company aims to raise up to $2 billion in capital and issue $1 billion in convertible debt, following a strategy similar to that of MicroStrategy.
A spokesperson from Trump Media dismissed the news, stating: “apparently the Financial Times has dumb writers listening to even dumber sources.” Shortly after winning the U.S. presidential election for the second time, former President Donald Trump put his 53% stake in Trump Media into a revocable trust managed by his son, Donald Trump Jr..
MicroStrategy has previously used convertible bonds, a type of loan investors can turn into company stock, to buy over 580,000 Bitcoins, now valued at approximately $63.6 billion. The company’s total outstanding debt is $8.2 billion, and its market capitalization sits at $103.2 billion—much higher than before it adopted the Bitcoin investment approach.
Other companies have started to adopt this model, including a special purpose acquisition company (SPAC) led by the son of Commerce Secretary Howard Lutnick, with support from Tether and SoftBank. Hedge funds often buy these convertible bonds to benefit from price differences, but some in the crypto sector worry that if MicroStrategy’s investment model fails, it could trigger a broader drop in cryptocurrency prices.
Regulatory and ethical challenges have surfaced as the Trump family expands into crypto. On Friday, a group of Democratic Senators—including Chris Murphy and Elizabeth Warren—said they expect to see a new amendment in the GENIUS Act. The goal is to prevent direct or indirect presidential involvement in stablecoins, which are digital tokens designed to maintain a stable value, often linked to the U.S. dollar. Details on the amendment are available here.
World Liberty Financial, where the Trump family holds a majority stake, issued the USD1 stablecoin. This digital asset was recently used by a company chaired by the United Arab Emirates’ national security adviser for a $2 billion transaction.
Before taking office, President Trump also issued the $TRUMP memecoin, a digital token that gave large owners special perks, including dinner with the President and a White House tour. These activities have raised concerns among Democrats. Congressman French Hill, Chair of the House Financial Services Committee, has acknowledged the controversy. Senator Kirsten Gillibrand stated she believes the memecoin is illegal but noted that the family should follow the law like anyone else regarding stablecoins.
A recent poll showed that 75% of respondents initially viewed the Trump family’s crypto efforts as a conflict of interest, though this number later declined to 60%, with 33% expressing no concerns.
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