Trump Media Stock Falls 10% on $2.5B Bitcoin Fundraising Plans

Trump Media & Technology Group announced a $2.5 billion private placement to create one of the largest Bitcoin treasuries among publicly traded companies, raising $1.5 billion in common stock and $1 billion in zero-interest convertible notes from about 50 institutional investors. The funds will be used primarily to purchase Bitcoin, which will be held as a central treasury asset by custodians Anchorage Digital and Crypto.com, with the latter also partnering on planned exchange-traded funds. Despite framing the move as a strategic pivot toward financial services and crypto-based business expansion under an 'America First' agenda, the announcement triggered significant investor skepticism, causing the company's stock to fall roughly 9-10% amid concerns over the scale of the investment and Bitcoin's volatility. The CEO, Devin Nunes, described Bitcoin as an 'apex instrument of financial freedom,' but critics, including economist Peter Schiff, accused the company of potentially front-running a government Strategic Bitcoin Reserve and questioned the ethics and viability of the plan. Trump Media, originally a social media company, is signaling a major shift toward becoming a financial entity with substantial Bitcoin holdings, joining other corporations like MicroStrategy and Tesla in corporate crypto investments. However, the steep sell-off and ongoing stock volatility highlight investor unease about the company's future direction and revenue prospects.