Trump Media and Technology Group (TMTG) Receives SEC Approval to Use $2.3 Billion to Purchase Bitcoin for Corporate Treasury.
Trump Media and Technology Group (TMTG) – the company largely owned and operated by President Donald Trump's Truth Social platform – has received a crucial approval from the United States Securities and Exchange Commission (SEC). On Friday, the company announced that the SEC has officially approved the effectiveness of the registration file related to the plan to hold Bitcoin as part of its corporate treasury.
With this move, approximately $2.3 billion in Capital raised from around 50 institutional investors has been "unlocked" and can be used to purchase Bitcoin at any time. In the prospectus, TMTG did not specifically disclose the volume of BTC it plans to buy, only stating: "TMTG will purchase Bitcoin and Bitcoin-related investments in volumes and at times that the company deems optimal."
TMTG's Bitcoin strategy is designed to be flexible, which may include purchasing Bitcoin-related securities. Under certain market conditions, the company may sell Bitcoin and invest the proceeds into assets such as cash, cash equivalents, or other interest-generating investments.
Potential to Raise Additional $12 Billion
The company's prospectus also includes a flexible issuance registration, allowing TMTG to raise up to $12 billion through the issuance of stocks, bonds, or warrants at any time. However, the company emphasized: "Currently, the company has no immediate plans to issue any securities under this registration file."
Additionally, 84.7 million shares held by initial investors have been registered for resale, equivalent to approximately half of the publicly traded shares and 30% of the total outstanding shares. TMTG is currently trading on the Nasdaq with the stock ticker DJT.
Besides the Truth Social social media platform, TMTG also operates the online television service Truth+ and recently launched a new fintech brand Truth.fi in January this year. According to the press release, Truth.fi is positioned as "an America First-oriented financial services and financial technology (FinTech) brand, focusing on Investment Vehicles with an 'America First' orientation."
