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Trump Media Bets Big: $3.85 Billion Plunge Into Bitcoin and Crypto

Trump Media Bets Big: $3.85 Billion Plunge Into Bitcoin and Crypto

Published:
2025-05-27 08:00:00
18
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Wall Street meets blockchain—again. Trump Media just signaled a $3.85 billion all-in move on crypto, according to FT. Because nothing says ’hedge against volatility’ like doubling down on digital assets.

Is this a masterstroke or a publicity stunt? Either way, the market’s about to feel the tremor. Brace for the usual circus: pundits screaming ’adoption milestone,’ skeptics rolling their eyes, and traders front-running the announcement.

Funny how legacy money always rediscovers crypto during bull runs—almost like they’ve got FOMO dressed up as strategy.

Trump’s $3.85B Crypto Bet: What It Means for Bitcoin and Investors

bitcoin moon

Source: Watcher Guru

Fundraising Structure and Timeline

The way Trump Media plans to collect Bitcoin is quite clear. While the company plans to raise $2 billion via its IPO and extra $1 billion in bonds, sources have reported that terms, timing and prices could be changed later on.

The planned capital raise happens during a major crypto conference this week which will also mark the appearance of Vice President J.D. Vance and the Trump sons, Donald Jr. and Eric. By announcing this plan in this way, it seems the company is taking advantage of its political contacts and recent interest in cryptocurrencies.

How The Market Responds and The Price Movements of Bitcoin

Within hours of Trump Media’s bitcoin announcement, the price of Bitcoin rose 1.7% to $109,525. This showed the market reacting quickly to any big announcements from high-profile politicians, resulting in the greatest gains for the crypto in recent times.

The digital asset has been on a remarkable run since early April, jumping 45% to reach new all-time highs. Last week, Bitcoin surpassed $111,000 for the first time, driven by mounting institutional demand and support from the TRUMP administration. Right now, Bitcoin continues to benefit from increased corporate adoption and favorable regulatory signals, which also impacts altcoins performance across the broader cryptocurrency market.

Company Diversification Strategy

The Truth Social parent company has been actively exploring potential mergers and acquisitions as it aims to diversify into financial services. This Trump Media Bitcoin strategy represents a significant expansion beyond the company’s social media roots and into the rapidly growing digital asset sector.

In April, Trump Media reached a binding agreement to launch various retail investment products, including crypto and exchange-traded funds aligned with Trump’s America First policies. This crypto investment approach leverages both the company’s political brand recognition and the growing mainstream acceptance of cryptocurrencies in traditional finance.

The diversification strategy also addresses concerns about the company’s reliance on its social media platform, which faces competition from established players. By entering the crypto space, Trump Media is positioning itself at the intersection of politics, technology, and finance.

Regulatory Environment and Industry Impact

The Trump Media Bitcoin plans emerge amid evolving crypto regulation discussions and increased government oversight of digital assets. The Trump administration has established a strategic Bitcoin reserve through executive order, demonstrating official government backing for cryptocurrency adoption and signaling support for digital asset integration into traditional business operations.

Such a large-scale crypto investment could encourage other corporations to explore similar strategies, potentially accelerating mainstream acceptance of altcoins and Bitcoin. Industry experts suggest that this level of presidential family involvement in cryptocurrency markets creates unprecedented territory for both institutional investors and retail participants.

At the time of writing, Trump Media is worth approximately $5.7 billion, though the company’s stock has been down 24% since the start of 2025. The success of this crypto investment initiative will likely influence how other major corporations approach digital asset strategies and could accelerate the integration of cryptocurrency into traditional business operations across various industries.

|Square

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