The Trump Media & Technology Group (TMTG) stated that it does not plan to invest $3 billion in cryptocurrencies, refuting information circulated by Financial Times. According to the publication, the company intended to raise funds through the issuance of new shares and convertible bonds.
This is reported by Finway
Response to the Rumors
Information about the potential investment appeared on May 26 in the Financial Times, which mentioned the possibility of raising $2 billion through new shares and $1 billion through convertible bonds. It was also noted that an official announcement could be made during a meeting of crypto investors in Las Vegas, where prominent figures are expected to speak.
However, TMTG representatives sharply denied this information, stating:
“It seems that the Financial Times employs foolish journalists who listen to even more foolish sources.”
Despite the denial, the news sparked approval in the stock market: TMTG’s market capitalization rose to $5.67 billion, and the company’s shares on the NASDAQ closed at $25.72, which is 4.6% higher compared to the previous day.
Context and Strategy
Experts note that TMTG’s initiative could replicate the successful strategy of Strategy, which transformed from a software company into one of the largest corporate holders of Bitcoin. Recall that Strategy announced plans to issue Class A preferred shares worth $2.1 billion for investment in cryptocurrencies.
During Donald Trump’s administration, there was active support for the development of cryptocurrencies. The close ties of the Trump family to the crypto world, including NFT cards and participation in crypto mining, make TMTG’s stated plans a logical step, even if these investments are currently denied.
Additional information about Trump’s crypto projects can be found in the relevant material on Incrypted.