DJT Stock Falls. The Truth Social Parent Is Raising $2.5 Billion to Buy Bitcoin. — Barrons.com
By Elsa OhlenTrump Media & Technology Group stock, which trades under the ticker DJT, 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 what it calls a Bitcoin treasury, the company 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.DJT stock fell 7.7% to $23.74 in Tuesday trading, bringing its losses to 30% this year.The move to invest in Bitcoin is similar to the strategy adopted by MicroStrategy, the largest corporate holder of Bitcoin, which sells equity, debt, and preferred stock to finance further crypto purchases. MicroStrategy was initially a software company, but is now widely seen as a leveraged bet on Bitcoin. The company has accumulated 580,000 digital coins worth over $60 billion based on current prices.Companies such as GameStop, Tesla, and Block have also bought Bitcoin for investment purposes.Trump Media's 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.Trump made cryptos a major focus in his reelection campaign last year. Apart from promising more crypto-friendly regulation, a strategic reserve of digital coins, and making the U.S. the crypto capital of the world, the president and his family are involved in several crypto businesses, including World Liberty Financial and the $TRUMP and $MELANIA memecoins.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.The White House didn't immediately respond to a request to comment.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, and plummeted to $17 in April this year.The company reported a net loss of $32 million in the first quarter of 2025 and has yet to report a quarterly profit.Since Trump's win and subsequent inauguration, the wild swings in share price have abated. It is unclear where the stock's next catalysts will come from.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.