Trump Media Stock Rallies After Acquiring $2bn Of Bitcoin
Trump Media & Technology Group (NASDAQ: DJT) climbed over 5% on Monday following the announcement that the company had acquired $2 billion in bitcoin and bitcoin-related securities.
Company Converts Two-Thirds of Its Assets Into Bitcoin Holdings
This move significantly shifts the company’s asset structure. Trump Media stated that the new holdings mean bitcoin now makes up approximately two-thirds of its total $3 billion in assets. The company reiterated that this development is part of a strategic plan initially disclosed in May, positioning itself as a bitcoin treasury company.
CEO Devin Nunes confirmed the strategy in a public statement, emphasizing that the crypto assets would secure financial independence, insulate the company from potential bias in the traditional financial sector, and support the launch of a utility token integrated with Truth Social and other company platforms.
Trump Media also revealed that an additional $300 million has been allocated toward an options acquisition strategy focused on bitcoin-linked securities.
Legislation Signed by Trump Gives Green Light to Stablecoins
The announcement comes at a time when federal lawmakers are moving toward more structured oversight of digital assets. On Friday, Donald Trump signed legislation creating a national regulatory framework for dollar-backed stablecoins. The law grants legitimacy to such assets and is expected to accelerate adoption.
In parallel, Trump-backed crypto venture World Liberty Financial has introduced its own stablecoin, USD1, in partnership with BitGo. The token is pegged to the U.S. dollar and is one of several efforts aimed at expanding conservative-aligned footholds in the crypto market.
Bitcoin Treasury Strategy Mirrors MicroStrategy’s Model
The broader strategy echoes the approach pioneered by Michael Saylor’s MicroStrategy, which began accumulating large quantities of bitcoin in 2020 as a primary corporate asset. Trump Media’s plan includes raising $2.5 billion through a combination of both equity and financing debt to aggressively build its cryptocurrency reserves.
Despite Monday’s stock uptick, DJT shares remain volatile. The stock has dropped 25% since announcing its bitcoin treasury plans in May and is down 45% year-to-date. Analysts continue to question the sustainability of the crypto-treasury model, citing high volatility and limited historical precedent.
Skepticism persists, but Trump Media appears committed to following a digital asset strategy now common among high-profile crypto-aligned firms.
