The U.S. Securities and Exchange Commission (SEC) has approved Trump Media and Technology Group’s (DJT) application for a Bitcoin purchase plan, granting the company access to $2.3 billion in capital to acquire the cryptocurrency.
Registration Statement for Trump Media Bitcoin Treasury Deal Becomes Effective. Source: sec.gov
Access to Billions Unlocked
Trump Media and Technology Group, the media company owned by U.S. President Trump, which operates the Truth Social platform, announced on June 13 that its registration had been approved by regulators.
The firm raised approximately $2.3 billion from 50 institutional investors, and those funds can now be used to buy Bitcoin at any time.
The company did not disclose the specific amounts of its planned purchases of the cryptocurrency. The prospectus states that Trump Media “will acquire Bitcoin and Bitcoin-related assets in amounts and on a schedule it deems optimal.”
The document also includes a universal shelf registration allowing the company to raise up to $12 billion in additional capital through the issuance of equity, debt, or warrants at any time.
“The company has no immediate plans to issue any securities under this registration,” the company said in a press release.
Massive Resale of Shares
About 84.7 million shares held by early investors are now registered for resale. This block represents about half of the public float and 30% of all outstanding shares. The company trades on the Nasdaq Stock Market under the ticker DJT.
Trump Media’s Bitcoin strategy may include direct purchases of Bitcoin as well as Bitcoin-related securities. Under certain market conditions, the company is also willing to sell Bitcoin and invest the proceeds in cash, cash equivalents, or other interest-bearing instruments.
Ecosystem Expansion
In addition to Truth Social, the company operates the Truth+ streaming service and launched a fintech brand called Truth.fi with cryptocurrency ambitions in January of this year. A press release describes Truth.fi as “a financial services and fintech brand incorporating America First investment tools.”
The SEC approval paves the way for Trump Media to pursue one of the largest corporate Bitcoin initiatives. The company has gained access to significant financial resources and the flexibility to choose when and how much to invest in cryptocurrency.
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Source:: Trump Media Wins SEC Approval for Historic $2.3B Bitcoin Treasury