2 weeks ago
The determination echoes akin steps taken by different crypto treasury companies, but could pb to accrued scrutiny of Trump’s crypto investments.
Update (May 26, 9:27 p.m. UTC): This nonfiction has been updated to see a connection from Truth Media and Technology Group.
Trump Media and Technology Group, the institution down US President Donald Trump’s Truth Social platform, is readying to rise $3 cardinal successful a premix of equity and convertible bonds to bargain Bitcoin and different cryptocurrencies, the Financial Times reported. The determination would presumption the institution to travel the footsteps of crypto treasury companies similar Strategy.
In a connection to the FT, the institution denied immoderate plans for a Bitcoin treasury. “Apparently the Financial Times has dumb writers listening to adjacent dumber sources,” it reportedly said. Cointelegraph has reached retired for further comment, but has not received a effect astatine the clip of publication.
Trump Media volition contented $2 cardinal successful equity and $1 cardinal successful convertible bonds, a benignant of plus that tin beryllium converted into equity astatine a aboriginal date. The size of the rise whitethorn change, the FT cited sources acquainted with the substance arsenic saying.
The equity is expected to beryllium sold astatine marketplace terms arsenic of the adjacent connected May 23. On that day, the stock terms closed astatine $25.72, marking a 4.6% summation connected the day. Trump Media’s marketplace capitalization was $5.7 cardinal arsenic of May 23.
Trump Media and Technology Group stock terms connected May 23. Source: Google FinanceThe institution is pursuing a akin attack to that pioneered by companies specified arsenic Strategy, Metaplanet, Semler Scientific and others, allocating portion of their funds to Bitcoin (BTC). Betting connected crypto provides a hedge against ostentation and keeps them from becoming “zombie companies,” immoderate of the companies person said.
Related: Strategy bags 4,020 Bitcoin arsenic terms concisely breaks $110K
Trump Media’s determination whitethorn summation scrutiny
The determination whitethorn besides effect successful much scrutiny toward the Trump family’s increasing crypto businesses. Democratic lawmakers person pushed backmost against bipartisan bills implicit the Trump family’s crypto dealings, with immoderate staging protests against the memecoin dinner Trump hosted connected May 22.
Trump’s crypto ties see non-fungible token collections, the Official Trump (TRUMP) and Melania (MELANIA) memecoins, decentralized concern level World Liberty Financial and a dollar-pegged stablecoin. Critics accidental that Trump’s crypto ventures airs a struggle of interest, particularly arsenic helium could clasp power implicit an manufacture helium stands to nett from.
According to the report, Trump transferred his 53% stock successful Trump Media and Technology to a revocable spot managed by Donald Trump Jr.
Magazine: Trump’s crypto ventures rise struggle of interest, insider trading questions
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