2.5 billion high-profile bet on Bitcoin: Trump Media & Technology Group is also imitating Strategy?

Written by: Luke, Mars Finance

In the tumultuous world of cryptocurrency, Donald Trump's name has once again become the focus of global attention. This time, he is not making shocking statements as a president, but rather stirring up a heated discussion about Bitcoin through his Trump Media & Technology Group (DJT). From the initial rumor of a $3 billion financing plan to the final confirmation of a $2.5 billion Bitcoin treasury strategy, DJT's actions resemble a meticulously choreographed market drama, triggering dramatic fluctuations in stock prices and a brief surge in Bitcoin prices. Behind this, Trump's wealth empire, policy direction, and the quiet positioning of institutional investors are adding more drama and complexity to this adventure. Is this a visionary pursuit of "financial freedom" or a high-risk gamble?

From rumors to denial to confirmation: a psychological war in the market

The story begins with an explosive rumor. According to the Financial Times, DJT plans to raise $3 billion through a mix of stock and convertible bonds to buy Bitcoin and other cryptocurrencies. This news hit the market like a bomb, quickly igniting enthusiasm. The price of Bitcoin briefly surged past $110,500 following the news, reaching a recent high, and investors seemed to start dreaming of this former president's bold attempt in the crypto space once again. However, DJT quickly came forward to deny the report, calling it "false" in an attempt to calm the market's unrest.

While the market is still digesting this rumor, Bloomberg has brought a new plot twist: DJT has officially announced the launch of a $2.5 billion Bitcoin treasury strategy, clearly incorporating Bitcoin into its asset reserves for "financial stability and long-term value storage." This amount, although lower than the rumored $3 billion, is still enough to shake the market. DJT's stock price experienced a rollercoaster of fluctuations after the news was announced, initially rising in pre-market trading, then briefly falling by nearly 12%, marking the largest single-day decline since March 10, 2025. The price of Bitcoin also retreated to $109,000 after a brief surge, reflecting the market's sensitivity to large inflows of funds into the crypto space.

This farce, from rumors to refutations to confirmations, can be described as a thrilling psychological battle in the market. DJT's rapid response and strategic adjustments indicate a precise grasp of market sentiment, while also exposing the inherent uncertainties of cryptocurrency investment. Is the $2.5 billion Bitcoin vault plan a well-thought-out strategic layout by the Trump team, or an impromptu chase of market trends? The answer may lie within DJT's business logic and Trump's wealth landscape.

Bitcoin: Trump's "Financial Freedom" Chip

DJT's CEO Devin Nunes unabashedly expressed his ambitions for cryptocurrency when announcing the Bitcoin vault initiative. He referred to Bitcoin as "the ultimate tool for financial freedom" and stated that this move aims to resist the "harassment and discrimination" that financial institutions may bring. This statement is thought-provoking. Trump and his team have long criticized the traditional financial system, believing it to be manipulated by political and ideological forces. Bitcoin, as a decentralized digital asset, is clearly seen by DJT as a weapon against traditional financial control.

What is more striking is that DJT is not content with simply holding Bitcoin, but plans to deeply integrate it with its core business. Truth Social and Truth+ platforms under DJT are social media ecosystems created by Trump, aimed at providing a voice for "America First" values. Nunes revealed that the company plans to use Bitcoin to support subscription payments for the platforms, develop utility tokens, and even explore other blockchain-based transaction scenarios. This strategy is not only an investment in cryptocurrency but also a bold attempt at its ecological application. Imagine when Truth Social users can pay subscription fees with Bitcoin or participate in platform governance through tokens, this will inject new possibilities into DJT's business model.

Nunes's ambitions do not stop there. He has made it clear that the Bitcoin treasury plan is an important step for DJT towards becoming a holding company. In the future, the company plans to acquire more "crown jewel assets" that align with the principle of "America First" to build a diversified portfolio. This ambitious vision is in line with Trump's consistent high-profile style. However, can the strategy of making Bitcoin a core asset withstand the test of the market? After all, the volatility of cryptocurrencies has long been a thorn in the hearts of investors.

Where does the 2.5 billion come from?

The source of funding for the $2.5 billion Bitcoin vault plan of the Trump Media & Technology Group (DJT) has become the focus of heated discussions in the market. The huge sum, which was raised through a private placement offering of $1.5 billion of common stock and $1 billion of 0.00% convertible senior secured notes, attracted subscriptions from about 50 institutional investors, Reuters reported. This financing structure demonstrates DJT's precise approach to capital markets: common equity offerings are aimed at investors who are bullish on the company's long-term potential, while zero-coupon convertible notes provide a flexible exit path for institutions with a higher risk appetite.

This financing method did not come out of nowhere. DJT has accumulated rich capital market experience since it went public in 2021 through a merger with the special purpose acquisition company (SPAC) Digital World Acquisition Corp. (DWAC). In December 2021, DJT raised $1 billion through a private investment in public equity (PIPE), demonstrating its ability to attract large amounts of capital. The $2.5 billion fundraising this time is largely attributed to Trump's personal brand effect and the appeal of his "America First" philosophy, attracting institutional investors who support his political and business vision. Additionally, DJT held $759 million in cash and short-term investments at the end of the first quarter of 2025, providing it with an extra financial buffer and further enhancing investor confidence.

From a strategic point of view, the $2.5 billion raised is not only a financial operation, but also an accurate capture of market sentiment by DJT. As a symbol of "financial freedom", Bitcoin is highly compatible with Trump's narrative against the traditional financial system, attracting a large number of idea-driven investors. However, the high-profile financing also comes with risks: the issuance of common shares may dilute existing shareholders' equity, and the potential conversion of convertible notes may drive up share price volatility in the future. In addition, DJT's financial position is not shaky, with a net loss of nearly $23 million and revenue of only $3.4 million in the first half of 2023, which makes the $2.5 billion fundraising particularly bold. The success of this financing is a testament to the ability of the Trump team to operate in the capital markets, but it remains to be seen whether it can turn the funds into real value.

Trump's Wealth Empire: The Confidence of Risk

To understand DJT's Bitcoin gamble, one cannot ignore Trump's wealth background. According to data from Forbes in March 2025, Trump's net worth reached $5.1 billion, an increase of $1.2 billion compared to the same period last year, setting a new record. This wealth empire is built on several pillars: DJT's valuation of $2.6 billion occupies a central position, with real estate investments and golf clubs each contributing $1.1 billion, and liquid assets reaching $770 million. From real estate tycoon to social media newcomer, and now to cryptocurrency player, Trump seems to always sense opportunities with high risks and high returns.

DJT's $2.6 billion valuation is largely due to Truth Social's branding. Although the platform struggles to compete with mainstream social media in terms of user size, its unique positioning and Trump's personal influence make it a symbol of the "America First" camp. The launch of the Bitcoin Vault program further strengthens DJT's image as a pioneer of innovation. However, is the $2.6 billion valuation enough to support a $2.5 billion Bitcoin investment? The market's reaction to DJT's share price may have given part of the answer.

Trump's wealth structure reveals his preference for high-risk assets. From real estate to golf clubs, and now to Bitcoin, his investment logic has always revolved around the possibility of high returns. This adventurous spirit is both the key to his success and a potential risk point. The short-term volatility of Bitcoin prices and the fluctuations in DJT's stock price remind us that the outcome of this gamble remains uncertain.

Dual support from policies and institutions

The DJT Bitcoin treasury plan is not an isolated event, but rather intertwined with broader policy and market trends. At the 2025 Bitcoin conference, U.S. Senator Cynthia Lummis revealed that the Trump administration supports the "Bitcoin Bill," which plans for the government to purchase 1 million bitcoins within five years, funded by the Federal Reserve System and existing funds from the Treasury Department. This policy signal undoubtedly endorses the legitimacy and strategic value of Bitcoin. Lummis also mentioned that the Trump administration's team is advancing legislative work on digital asset issues such as stablecoins, market structure, and Bitcoin strategic reserves, indicating that the importance of cryptocurrency at the policy level in the U.S. is rapidly increasing.

At the same time, the actions of institutional investors further fueled the Bitcoin craze. Global asset management giant BlackRock, with its $11.5 trillion in assets under management, has recently significantly increased its holdings in its spot Bitcoin ETF (IBIT). Since being approved for listing in January 2025, IBIT has attracted over $10 billion in funds, becoming one of the most popular Bitcoin ETFs. The public statement from BlackRock's managing director—"The upside potential of Bitcoin far exceeds that of gold"—not only ignited market enthusiasm but also provided strong endorsement for Bitcoin's long-term value.

BlackRock's increased holdings are not an isolated case. Market monitoring data shows that the inflow of funds into IBIT continues to rise, reflecting strong demand from institutional investors for cryptocurrencies. This trend resonates with DJT's Bitcoin vault plan, collectively driving the mainstreaming of Bitcoin. Imagine the level of market confidence when the world's largest asset management firm and a former president's business empire are both betting on Bitcoin. However, behind the confidence, risks still loom large.

The game between risk and opportunity

The charm of Bitcoin lies in its decentralized nature and long-term appreciation potential, but its volatility is equally daunting. The $2.5 billion treasury plan of DJT, while showcasing ambition, also comes with significant market risks. After the announcement, the price of Bitcoin briefly surged to $110,500, then retreated to $109,000, indicating the market's sensitivity to large capital inflows. The dramatic fluctuations in DJT's stock price—rising pre-market and then briefly dropping by 12%—further reflect investors' uncertainty about this strategy.

From a broader perspective, Trump's "America First" stance and confrontational stance towards traditional financial institutions may lay hidden dangers for DJT's future development. While Bitcoin is seen as the "supreme instrument of financial freedom," its price volatility and regulatory uncertainty could put DJT's balance sheet under pressure. In addition, the implementation of the Bitcoin Act still needs to face complex issues such as legislation and funding sources, and policy uncertainty may further amplify market risks.

For ordinary investors, Trump's Bitcoin gamble is both an opportunity and a warning. BlackRock's increased holdings and support from policymakers indicate that Bitcoin's long-term value is being recognized by the mainstream. However, short-term volatility and market uncertainty remind us to approach this crypto craze with caution. DJT's $2.5 billion treasure plan may just be a snapshot of the cryptocurrency wave, while the real story is only just beginning.

Conclusion: The Adventurer's Game

From the $3 billion rumors to the $2.5 billion confirmation, from the stock price roller coaster to Bitcoin's brief surge, the Bitcoin treasury plan of Trump's Media and Technology Group is undoubtedly a major highlight in the 2025 crypto market. This is not just a business venture, but a game about financial freedom, policy direction, and market confidence. Trump's wealth empire provides the backing for this adventure, while support from policies and institutions adds to its aura, but the balance of risk and opportunity remains the biggest suspense of this gamble.

On the stage of cryptocurrency, Trump has once again proven his presence. Is his choice a bold bet on the future or a high-risk gamble? Perhaps only time will provide the answer. And for us spectators, every twist and turn of this adventure is worth holding our breath for.