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Trump Media and Technology Group (TMTG) executed an abrupt about-face this Wednesday, confirming plans to raise $2.5 billion for Bitcoin purchases after initially dismissing such reports as "fabrications." The parent company of Truth Social revealed the capital raise comprises 【$1.5 billion】 in stock sales and 【$1 billion】 in zero-coupon convertible bonds, with closing scheduled for May 29.
CEO Devin Nunes framed the move as protection against traditional finance: ——We see Bitcoin as financial armor against institutional discrimination——. Yet markets reacted harshly, with TMTG shares plunging 【12%】 to $23.60 post-announcement. The contradictory messaging—first mocking Financial Times reporters as "dumb," then confirming their scoop—left investors questioning management credibility.
This development coincides with surging corporate Bitcoin adoption. MicroStrategy added 【4,020 BTC】 on May 26, while Japan's MetaPlanet acquired 【1,004 BTC】 days earlier. Analyst Jesse Myers warns institutions could control 【50%】 of Bitcoin's supply by 2045 at current accumulation rates. ——The great fiat exodus has begun—— Myers noted, highlighting gold and crypto as preferred havens.
Semler Scientific's recent 【$50 million】 Bitcoin purchase exemplifies the treasury strategy trend. Interestingly, these moves come despite Bitcoin's 【30%】 price drop after May's industry conference. The divergence suggests corporations view crypto differently than retail traders—as both inflation hedge and geopolitical tool rather than speculative asset.
Remarkably, TMTG hasn't clarified its Bitcoin custody plan or whether the bonds will convert to equity or crypto. Market observers note the 0% coupon structure resembles distressed debt financing. As traditional and digital finance collide, one truth emerges: Wednesday's volatility may foreshadow bigger disruptions ahead.