Trump Media & Technology Group (TMTG) categorically rejected reports of plans to invest $3 billion in the cryptocurrency market, which previously appeared in the Financial Times. Despite this, the news sparked a surge of interest among investors and affected the company’s market value.
This is reported by Business • Media
Information on Investments and Company Reaction
On May 26, the Financial Times, citing six informed sources, reported on TMTG’s potential plans to raise $2 billion through the issuance of new shares and another $1 billion through convertible bonds that could be converted into the company’s securities. It was also noted that an official announcement could take place this week during a crypto investors’ event in Las Vegas, where speeches by Vice President JD Vance, Donald Trump Jr., Eric Trump, and “crypto king” David Sacks were expected.
However, TMTG representatives sharply denied this information. The company’s team stated:
“It seems that the Financial Times employs foolish journalists who listen to even more foolish sources.”
No further official comments from TMTG or members of the Trump family have been received. Cointelegraph’s inquiries also went unanswered.
Market Impact and Context of Crypto Initiatives
Despite the denial, the initial statement had a positive effect on the stock market: TMTG’s capitalization rose to $5.67 billion, and the company’s shares closed at $25.72, up 4.6% on the NASDAQ exchange at the time of publication.
Media outlets noted that TMTG’s potential strategy could follow the experience of Strategy, which transformed from a software company into a major corporate holder of bitcoins, using debt and equity instruments to invest in cryptocurrencies. Recently, Strategy announced plans to issue Class A preferred shares (STRF) worth $2.1 billion, intending to spend part of the funds on acquiring bitcoin.
During Donald Trump’s presidency, the administration strengthened support for the cryptocurrency industry. Trump himself has repeatedly declared the goal of making the U.S. the “crypto capital of the world.” The Trump family already has experience in this sector: from launching NFT cards and meme coin projects to participating in crypto mining and funding stablecoins.
In this light, TMTG’s potential plans would seem a logical continuation of crypto initiatives, even despite their official denial.