Making bitcoin part of the balance sheet is especially taking hold among Trump-related businesses.
On the same day Trump Media unveiled its plans, PSQ Holdings, the “anti-woke” retailer where Trump Jr. is a board member, said it intends to “explore” a new stockpile of digital assets, while Strive Asset Management, co-founded by Vivek Ramaswamy, announced a $US750 million transaction to help it fund its own bitcoin war chest.
It’s popular with members of Trump’s administration, too. Cantor Fitzgerald’s special purpose acquisition company Cantor Equity Partners, helmed by Commerce Secretary Howard Lutnick’s son Brandon, is teaming up with Tether Holdings and Softbank Group to create a new digital-asset venture called Twenty One Capital with the goal of accumulating bitcoin.
Eric Trump and Donald Trump Jr are becoming regular guests at crypto conferences.Credit: Bloomberg
Other major holders include Tesla, led by top Trump donor Elon Musk, Metaplanet, the Tokyo-based company where Eric Trump is an adviser, and Hut 8, which is a majority stakeholder in a newly formed bitcoin mining company backed by Trump’s family.
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For Trump Media, the bitcoin pivot comes as it struggles to make money with its social-media network Truth Social. The company, which has long traded like a meme stock decoupled from fundamentals, reported losing $US38 million on revenue of $US820,000 in the first quarter. Last year it reported a $US401 million net loss.
The president, through a trust managed by his eldest son, owns Trump Media shares worth about $US2.6 billion, according to the Bloomberg wealth index.
The company agreed to sell around $US1.5 billion in stock and $US1 billion in convertible bonds for the bitcoin purchase, with the offering expecting to close on May 29. Cantor Fitzgerald advised on the deal.
Bloomberg
