Trump Media Bets on Bitcoin with a $2 Billion Investment
Media company Trump Media & Technology Group (TMTG), owner of the social network Truth Social, announced a significant investment in bitcoin amounting to $2 billion. The announcement, made on July 22, 2025, marked a key step in the company’s new investment strategy aimed at establishing a cryptocurrency reserve. TMTG CEO Devin Nunes described the purchase as part of the 'bitcoin reserve plan', intended to ensure the company’s financial independence and protect it from potential discrimination by traditional financial institutions. Apart from the main purchase, TMTG allocated $300 million for an optional strategy to acquire securities related to bitcoin, underlining its intention to strengthen its position in the cryptocurrency sector.
The news of the bitcoin purchase caused a positive market reaction: TMTG shares rose by 5.6% ($1.04) to $19.71 on the day of the announcement. However, over the past year, the company's shares have lost 42% of their value. Financial results for the first quarter of 2025 show a revenue increase to $821,000 compared to $770,000 a year earlier, and an operating loss reduction from $98.3 million to $39.5 million. These figures reflect the company's efforts to stabilize its financial position amid diversification into cryptocurrencies.
The cryptocurrency reserve strategy involves the long-term acquisition and holding of digital assets, similar to investments in traditional assets like bonds, to ensure financial flexibility. TMTG follows the example of MicroStrategy, led by billionaire Michael Saylor, which owns more than 607,000 bitcoins valued at over $72 billion, making it the largest public company with a bitcoin reserve. MicroStrategy's success, with its shares soaring 3500% since 2020 amid a 74% bitcoin price rise to over $118,000 in the past year, has inspired other companies, including TMTG, to take similar steps. TMTG plans to use its bitcoin assets to support the implementation of a utility token in the Truth Social ecosystem, indicating further integration of blockchain technologies.
TMTG’s investment aligns with the global trend of corporate acceptance of cryptocurrencies as alternative reserve assets. This trend is supported by increasing government backing: President Trump recently signed the GENIUS Act, the first major U.S. legislation regulating digital currencies. The administration also plans to create a national 'strategic reserve' of crypto assets, which could further legitimize corporate investments in bitcoin. TMTG is not limited to accumulating bitcoins: the company plans to launch investment products, including exchange-traded funds (ETFs), to diversify its portfolio and take advantage of the growing popularity of digital assets.
Trump Media's $2 billion investment in bitcoin makes the company a significant player in the corporate crypto-investment market, following in the footsteps of MicroStrategy. By integrating cryptocurrencies into its financial strategy, TMTG aims to ensure long-term stability and drive innovation within the Truth Social platform. As the cryptocurrency market evolves and the regulatory environment becomes more favorable, TMTG's bold step could set an example for other companies considering digital assets as a means of protection against financial uncertainty.