Trump's Truth Social raises $2.5 billion from undisclosed sources to buy Bitcoin

As a media company, Trump Media & Technology Group (TMTG), the parent company of Truth Social, is a failure. According to its latest SEC filings, TMTG generated just $821,200 in revenue in the first quarter of 2025 against $40 million in expenses. For the entire year of 2024, the company generated $3.6 million in revenue and incurred $189 million in expenses. The company, tellingly, does not disclose the number of users it has. But its anemic revenues suggest few people are logging onto its social network or watching its streaming video content.

It wasn't supposed to be this way. In an investor presentation coinciding with the company's 2021 launch, TMTG projected $835 million in revenue for 2024. The company's actual revenue in 2024 was $3.6 million.

TMTG predicted that in 2025, it would generate $1.8 billion in revenue. After bringing in just $821,200 in the first three months of 2025, TMTG has a long way to go to hit its target.

In other ways, however, TMTG has been a success. Based on its stock price, the company has a market capitalization of over $5 billion. Trump owns about 50% of the company shares, making it one of his most valuable assets. Trump fans invest in TMTG stock, which trades under the symbol DJT, to express their affinity for Trump.

Still, goodwill only goes so far. With its meager earnings, DJT stock has declined by over 50% in the last year. Now the company has launched an audacious plan to increase its value.

In a Tuesday press release, TMTG announced "the Company agreed to issue and sell approximately $1.5 billion in the Company's common stock and $1.0 billion in principal amount of 0.00% convertible senior secured notes, for gross proceeds of an aggregate [sic] approximately $2.5 billion." TMTG will use that cash to buy a pile of Bitcoin, creating a "Bitcoin treasury."

In other words, owners of TMTG stock will not just own a media company that loses tens of millions of dollars every quarter, but also a portion of the Bitcoin pile. TMTG is copying the tactics of Strategy, the company formerly known as MicroStrategy, which has largely abandoned its original mission of selling software in favor of buying Bitcoin. Investors purchase Strategy stock as a way of investing in Bitcoin. For reasons that are not entirely clear, Strategy stock sells for several times the value of the company's Bitcoin holdings.

Financial columnist Matt Levine believes that the Bitcoin gambit has worked for Strategy because it has a first-mover advantage — it was the first stock that allowed people with brokerage accounts to essentially invest in Bitcoin. Also, Strategy Chairman Michael Saylor effectively and relentlessly markets the concept to investors.

TMTG has its own advantage: its majority owner is the President of the United States. The involvement of Trump is the only plausible explanation of how TMTG found "approximately 50 institutional investors" to give the company $2.5 billion to buy Bitcoin. These same investors, of course, could have used the cash to buy Bitcoin directly or buy Strategy stock.

Trump, however, controls or influences policies that will directly impact the future price of Bitcoin and other cryptocurrencies. Trump has already announced his intention to create a "strategic crypto reserve" that will include Bitcoin. Under Trump, the Department of Justice has settled or ended prosecutions against crypto exchanges, making it easier for more people to purchase Bitcoin. And Trump is pushing for legislation that will integrate Bitcoin and other cryptocurrencies more deeply into the US economy.

For many investors, linking Trump's financial future directly to the price of Bitcoin is the opportunity of a lifetime.

The move is also part of a larger effort by Trump to profit from rising cryptocurrency prices during his presidency. This includes the Trump family's 60% ownership stake in the crypto firm World Liberty Financial and Trump's eponymous memecoin, $TRUMP.

This week, Vice President JD Vance, Trump crypto czar David Sacks, Trump's 2024 campaign co-manager Chris LaCivita, and Trump's two oldest sons will address the Bitcoin 2025 conference.

Truth Social's plan to monetize Trump's tariffs

The Bitcoin scheme is not the first time Truth Social has taken steps to monetize Trump's control of federal policy.

In its April 15 press release, TMTG announced the launch of new investment accounts to "offer investors access to curated, thematic investment strategies rooted in American values and priorities." Among the themes are "Made in America," which appears to focus on companies that would benefit from tariffs on competitors who make goods abroad and import them to the United States.

It is unclear why a media company is launching investment accounts.

Jon DuPrau of Index Technologies Group, a company that is partnering with TMTG to create the investment accounts, linked the offering to political changes led by Trump. "At a time when the foundations of American prosperity are shifting, it's critical that our investment strategies reflect the values that define us," DuPrau said. "Made in America is more than just a theme — it's a declaration of support for businesses essential to our economy, national security, and enduring freedoms. These strategies empower investors to align their portfolios with patriotic and ethical convictions." According to a press release, TMTG's investment vehicles will reflect "America First principles." Other themes include "Faith & Values," "Liberty & Security," and "Energy Independence."

Trump will profit from these accounts because TMTG will invest a portion of its cash reserves in accounts. Further, as the majority shareholder in TMTG, Trump will benefit from the fees generated by these accounts when outsiders invest. As President, Trump will be able to influence of the assets in the accounts through tariffs and other policies.