Trump Media Accumulates $2 Billion Bitcoin. What Comes Next, According to Truth Social Parent. — Barrons.com

By Mackenzie TatananniTrump Media and Technology Group announced Monday that it had accumulated roughly $2 billion in Bitcoin and related securities as part of its previously announced treasury strategy.The holdings make up around two-thirds of Trump Media's approximately $3 billion in liquid assets, the company said. The company vowed to "continue acquiring bitcoin and bitcoin-related assets and to convert its options into spot bitcoin, depending on market conditions."These assets will be used to generate revenue and "potentially to acquire additional crypto assets," Trump Media said. While the Truth Social parent failed to provide details about its latest purchases, the company said it had allocated around $300 million of additional capital to an options acquisition strategy for Bitcoin-related securities.It's difficult not to compare the company's approach to that of MicroStrategy, the world's largest corporate holder of Bitcoin. Strategy, commonly viewed as an investment vehicle for gaining exposure to Bitcoin, has been steadily bulking up its crypto holdings since unveiling its treasury plans in 2020.Trump Media's treasury aspirations began in earnest in May, when the company shared its plans to raise $2.5 billion to fund future purchases of Bitcoin. CEO Devin Nunes professed at the time that the crypto was "an apex instrument of financial freedom."The company previously filed to launch an investment fund for cryptocurrency, according to a document made public this month. The so-called Crypto Blue Chip ETF offers exposure to digital currencies including Bitcoin, Ether, and XRP. Earlier this year, Trump Media announced the launch of a fintech called Truth.Fi, which pledged to devote around $250 million to crypto and other investments.The latest announcement comes on the heels of a major regulatory development. President Donald Trump, the majority owner of Trump Media, signed the Genius Act into law on Friday. The legislation outlines federal rules for stablecoins, which are commonly pegged to a fiat currency like the U.S. dollar.Shares of Trump Media rose 4.6% to $19.53 on Monday. The benchmark S&P 500 and tech-heavy Nasdaq Composite were up 0.6% and 0.7%, respectively.Write to Mackenzie Tatananni 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.