DJT Stock Falls. The Truth Social Parent Is Raising $2.5 Billion to Buy Bitcoin. — Barrons.com

By Elsa OhlenTrump Media & Technology Group stock slumped early Tuesday after the Truth Social parent unveiled plans to raise $2.5 billion to buy Bitcoin.The capital raise comes as the price of the world's largest cryptocurrency is hovering around its all-time high. Trump's media company will sell $1.5 billion in common stock and $1 billion in convertible senior secured notes and use the proceeds to create a "Bitcoin treasury," it said in a statement Tuesday morning."We view Bitcoin as an apex instrument of financial freedom, and now Trump Media will hold cryptocurrency as a crucial part of our assets," CEO Devin Nunes said.The announcement came only minutes after the Bitcoin 2025 conference kicked off in Las Vegas, with speakers including Vice President JD Vance as well as Trump's sons Donald Jr. and Eric.The White House didn't immediately respond to a request to comment.Following the election win, Trump put his 52% share of the company in a trust controlled by his son Donald Jr., according to a December Securities and Exchange Commission filing.DJT stock had a wild ride in the run-up to the presidential election in November as shares were widely seen as a proxy for Trump's chances of winning a second term in the White House. The stock hit $51 in October last year, only to plummet to $17 in April this year.Since the win and subsequent January inauguration, the wild swings in share price have abated, and it's unclear from where the stock's next catalysts will come.That might change if Trump Media ventures further into the crypto world, known for its volatility and sensitivity to investor sentiment or "hype."Write to Elsa Ohlen at [email protected] content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.