The news: Trump Media & Technology Group (TMTG) has built up a US$2 billion stake in bitcoin and bitcoin-related securities as part of its bitcoin treasury strategy.
The numbers: TMTG announced on Monday that that the company’s holdings now comprise around two-thirds of Trump Media’s approximately US$3 billion in liquid assets.
TMTG said that around US$300 million in capital was allocated to an options acquisition strategy for bitcoin-related securities. The company said it plans to continue acquiring bitcoin and bitcoin-related assets and to convert its options into spot bitcoin, depending on market conditions. These assets will be used by the company to generate revenues and potentially to acquire additional crypto assets.
The context: The news comes after Trump signed the GENIUS Act into law late on Friday, marking a huge win for the crypto industry and prompting a jump in crypto-linked companies on Monday.
Bitcoin, the world’s biggest cryptocurrency, inched 0.4% up, though it remains more than 3% away from its all-time high of US$123,153 hit early last week. Ether was last trading at US$3,795.4 after hitting its highest level for the year on Sunday.
Earlier this year, TMTG began emulating the crypto treasury play pioneered by Michael Saylor’s Strategy which now owns more than 3% of all the bitcoin ever minted. Bloomberg explains that the basic idea of a bitcoin treasury is that the US stock market will pay US$2 for US$1 worth of crypto. So, if you have a pot of crypto, you should merge it with a small US public company, because then your pot of crypto will be worth twice as much.
What they said: Trump Media’s CEO and President Devin Nunes said, “We’re rigorously implementing our publicly announced strategy and fulfilling our bitcoin treasury plan. 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.”
