Trump Media and Technology Group announced a $2 billion bitcoin purchase.
Bitcoin accounts for two-thirds of its $3 billion of liquid assets.
Trump’s media company is among numerous companies that are pivoting to crypto treasury firms.
Trump Media and Technology Group has accelerated its bitcoin treasury strategy, with the parent company of Truth Social announcing a $2 billion bitcoin purchase on Monday.
The president’s social media company said in May that it would begin piling up bitcoin as it pursues a crypto treasury strategy that’s been popularized by a handful of companies in recent years, most notably Michael Saylor’s Strategy.
The $2 billion purchase accounts for roughly two-thirds of Trump Media’s $3 billion in liquid assets. But according to a statement, the company has allocated an additional $300 million as part of an “options acquisition strategy for bitcoin-related securities.”
The statement also revealed that Trump Media’s plans include acquiring more bitcoin and bitcoin-related securities and may convert these options into spot bitcoin.
“These assets help ensure our Company’s financial freedom, help protect us against discrimination by financial institutions, and will create synergies with the utility token we’re planning to introduce across the Truth Social ecosphere,” stated Trump Media president and CEO Devin Nunes.
Trump Media’s bitcoin treasury plan follows the example set by companies like Saylor’s Strategy, which owns 3% of the world’s entire bitcoin supply. Its bitcoin focus has boosted the stock immensely in recent years, with gains outpacing actual bitcoin. Strategy stock is up 49% year-to-date, compared to a 26% gain for bitcoin.
Other companies such as BitMine Immersion Technologies have opted for similar strategies, establishing a $500 million Ethereum reserve. Another ethereum treasury company, The Ether Machine, is set to go public in a SPAC deal and will soon start trading on the Nasdaq.
Bitcoin has touched a series of record highs in recent weeks amid the Trump administration’s pro-crypto push, breaching above $120,000 for the first time last week.
News of Trump Media’s bitcoin purchase sent the stock up as much as 5% on Monday.
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