Washington [US], May 28: US President Donald Trump's social networking company announced plans on May 27 to raise about $2.5 billion with the goal of creating a 'bitcoin treasury', according to AFP.
Trump Media & Technology Group, the operator of President Trump 's social network Truth Social , announced it has signed subscription agreements with about 50 institutional investors.
Under the agreements, Trump Media & Technology Group has agreed to issue and sell approximately $1.5 billion of common stock and $1 billion of senior secured convertible notes in a private offering. The offering is expected to close on May 29, according to Trump Media & Technology Group.
"We see bitcoin as the ultimate tool for financial freedom, and Trump Media will embrace digital currencies as a key part of our assets," Trump Media CEO Devin Nunes stressed.
Mr Nunes added that the investment would "help protect our company from harassment and discrimination by financial institutions".
Trump Media & Technology Group also announced that the company aims to expand its reach "through the U.S. economy first." President Trump has previously pledged to make the U.S. "the digital currency capital of the world."
After hitting a record high of $110,000 on May 22, the price of bitcoin is expected to rise to $130,000 as the digital currency has transformed from a speculative asset to a "strategic pillar" of the modern economy, according to experts quoted by the Bangkok Post .
According to a report by the Bitkub Exchange (Thailand), the development of bitcoin is accelerating as institutional investment, government acceptance and macroeconomic trends are turning this digital currency into a foundational layer of global finance.
Source: Thanh Nien Newspaper
