Key Takeaways
Social media platform Truth Social’s parent company, Trump Media, said roughly two-thirds of its liquid assets consist of crypto to become the fifth-largest corporate BTC treasury.
Trump Media and Technology Group Corp [DJT] announced on the 21st of July, that it has accumulated roughly $2 billion in Bitcoin and related assets. The press release said that,
“The Company has accumulated approximately $2 billion in bitcoin and bitcoin-related securities as part of its previously announced bitcoin treasury strategy.”
The previously announced Bitcoin treasury strategy came in May. Trump Media, which owns the social media platform Truth Social, revealed in May their plan to raise $2.5 billion to acquire BTC.
Their goal was to create a reserve of cryptocurrency.
Trump’s stake in this company now amounts to $2.3 billion, and he is its largest investor.
The company also announced that its Bitcoin holdings comprise two-thirds of Trump Media’s liquid assets. DJT shares were up as much as 9% during the day’s trading session open. By close, this figure was down to 3.1%.
Apart from this, approximately $300 million would be allocated to an Options acquisition strategy for Bitcoin-related securities. Trump Media’s CEO and President, Devin Nunes, said,
“We’re rigorously implementing our publicly announced strategy and fulfilling our bitcoin treasury plan. These assets help ensure our Company’s financial freedom, help protect us against discrimination by financial institutions, and will create synergies with the utility token we’re planning to introduce across the Truth Social ecosphere.”
The utility token, if and when introduced, will no doubt add even more to the President’s wealth on paper.
Some comments on X broached the topic of self-enrichment by the President, questioning how it wasn’t a conflict of interest.
The Trump family’s embrace of Bitcoin and digital assets
Once a crypto skeptic, Trump has moved in the opposite direction since the Presidential election. He ran and won as the pro-crypto candidate, and has signed an executive order to establish a Bitcoin strategic reserve.
The “crypto week” from the 14th to the 18th of July saw the U.S. House of Representatives vote on multiple crypto bills.
Last Friday, on the 18th of July, Trump signed into law the GENIUS Act, which establishes a federal framework for stablecoin issuers.
The Trump family owns a large chunk of World Liberty Financial through a business entity. It is the DeFi and crypto venture that has made more than $500 million since its launch last September, according to Reuters.
The Official Trump [TRUMP] memecoin has also padded the President’s wallet.
