Trump Media buys $2 billion in Bitcoin continuing crypto boom

Acquisition comes as Trump administration continues to embrace digital assets

The price of Bitcoin has surged since President Donald Trump began his second term in office in January. AFP

Trump Media has accumulated roughly $2 billion in Bitcoin and related securities as part of its previously announced Bitcoin Treasury Plan, the company announced on Monday.

The holdings now account for about two thirds of Trump Media’s approximately $3 billion in liquid assets, it said. The company also said about $300 million in additional capital was allocated to an options acquisition strategy for related securities.

Trump Media, which owns the Truth Social media platform, said it plans to continue purchasing Bitcoin and related assets and convert its options into spot Bitcoin, depending on market conditions. The company will use the assets to potentially “acquire additional crypto assets”, it said.

“We're rigorously implementing our publicly announced strategy and fulfilling our Bitcoin Treasury Plan,” Trump Media president Devin Nunes said. “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.”

Shares in Trump Media rose 5.46 per cent to $19.67 per share following the announcement. The US President Donald Trump's media company had said in May that it plans to raise $2.5 billion to establish a Bitcoin treasury.

The price of Bitcoin has surged since Mr Trump took office in January. The cryptocurrency climbed above $123,000 for the first time last week in anticipation of a slate of crypto-friendly bills being passed by Congress.

US stablecoin legislation could be a watershed moment for crypto

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The price of Bitcoin was trading 0.44 per cent higher at $118,958.86 as of 6.30pm UAE time. Bitcoin's gains extended to crypto-linked stocks on Monday, with shares in the crypto exchange Coinbase Global rising more than 3 per cent to $432.50. Circle Internet Group gained 0.4 per cent. The price of Ethereum also gained 1.75 per cent to $3,823.45.

Meanwhile, the S&P 500 and Nasdaq Composite both hit new intraday highs after rising 0.6 and 0.7 per cent, respectively. The Dow Jones Industrial Average rose 0.54 per cent, or 241.03 points, to 44,583.22.

Leading industry optimism last week was the signing of the Genius Act, which would allow private companies to issue stablecoins. The ruling also establishes a regulatory framework for the stablecoin market.

The week, which has been dubbed “crypto week” by Republicans, marked the culmination of Washington's embracing of an industry that had clashed with former president Joe Biden's administration.

“The signing of the Genius Act into law marks an important milestone in the effort to bring regulatory clarity to crypto,” the Securities and Exchange Commission commissioner Hester Peirce said in a statement at the time. Ms Pierce also said the act would help the SEC give guidance on how registrants can use payment stablecoins.

World Liberty Financial, a crypto start-up backed by Mr Trump, previously launched its own dollar-pegged stablecoin with BitGo.

The House of Representatives last week also passed the Clarity Act, which is designed to help establish the roles of the SEC and Commodities Futures Trading Commission in overseeing crypto assets. The bill will now be considered in the Senate.

The House also passed the CBDC Anti-Surveillance State Act, which blocks the Federal Reserve from issuing a central bank digital currency (CBDC) without congressional approval. Unlike cryptocurrencies, a CBDC is issued and supported by a central bank.

The House Financial Services Committee chairman French Hill said the bill “safeguards the privacy of Americans by prohibiting the creation of a Central Bank Digital Currency in the United States”.