Trump Media's Bitcoin Treasury Deal Approved
Trump Media's Bitcoin Treasury Deal Approved by SEC
Trump Media and Technology Group (TMTG), parent company of Truth Social and partially owned by Donald Trump, received US Securities and Exchange Commission (SEC) approval for its $2.3 billion Bitcoin treasury deal. The SEC declared effective TMTG's S-3 registration statement, filed on June 6th, allowing the sale of approximately 56 million shares and 29 million shares tied to convertible notes.
This financing, from roughly 50 investors, will support TMTG's expansion plans. While the S-3 registration includes a universal shelf for future flexibility, the company currently has no immediate plans to issue additional securities.
Aggressive Expansion Plans
TMTG CEO Devin Nunes stated the company is "aggressively implementing plans to expand the Company, our offerings, and our capabilities." He highlighted the Bitcoin treasury as crucial to transforming TMTG into a key player in the "Patriot Economy."
Despite the SEC approval, TMTG's stock price experienced a 2.06% drop on June 13th, closing at $19.52.
Bitcoin Strategy and ETF Filing
This follows TMTG's May 27th announcement of a $2.5 billion capital raise to purchase Bitcoin, after initially denying such reports. Nunes previously described Bitcoin as an "apex instrument of financial freedom." Furthermore, on June 5th, TMTG filed with the SEC to launch a spot Bitcoin ETF, aiming to track Bitcoin's price performance.
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