The Trump Media and Technology Group, which operates the social media platform "Truth Social," announced on the 13th that the U.S. Securities and Exchange Commission (SEC) has approved the registration filing for its Bitcoin financial strategy.
As a result, the company has been able to acquire Bitcoin (BTC) using the $2.3 billion (approximately ¥330 billion) in funds raised from about 50 institutional investors recently.
The amount expected to be acquired in Bitcoin has not been disclosed, and the purchase is optional, and the funds raised can also be used for general corporate purposes.
Trump Media announced at the end of May that it would implement one of the largest Bitcoin financial strategies of a publicly traded company through a private placement of common stock and non-interest-bearing convertible preferred bonds.
Trump Media's CEO Devin Nunes commented as follows.
We are actively implementing plans to expand our business and services and enhance our capabilities. We are simultaneously strengthening and growing our social media platforms, TV streaming platforms, and fintech brands.
At the same time, by establishing a Bitcoin financial strategy, the company aims to continue transforming itself into an essential enterprise for the expanding customer base of the Patriot Economy.
The term "Patriot Economy" mainly refers to a movement primarily among American conservatives and right-wing individuals that supports companies and products that they politically and ideologically resonate with, aiming to share values through economic activities.
Trump Media operates a streaming service called "Truth+" in addition to "Truth Social," and launched a fintech brand called "Truth.fi" in January of this year with an eye toward investing in cryptocurrency.
The company submitted the final prospectus to the SEC after receiving approval for the registration statement. This included the "Universal Shelf (general shelf registration)" as part of the content. This allows for the issuance of up to $12 billion (approximately 1.7 trillion yen) in stocks, corporate bonds, or warrants (stock options) at any time.
Trump Media stated, "For the time being, there are no plans to issue securities based on this universal shelf registration."
Approximately 84.7 million shares held by early investors have been registered for resale, which accounts for about half of the company's outstanding shares and 30% of the total issued shares.
What is Universal Shelf?
Universal Shelf Registration in English. It is a system used in financial markets such as the United States, allowing companies to register in advance to issue securities (stocks, corporate bonds, warrants, etc.) up to a certain amount.
Currently, there is an increasing number of companies investing in cryptocurrencies, including Bitcoin, around the world. As of May, the total Bitcoin held by 85 publicly listed companies and institutional investors worldwide has exceeded 800,000 BTC, reaching about 4% of the total supply.
Corporate purchases of Bitcoin are considered to be one of the factors supporting Bitcoin. On the other hand, there are experts who caution that the large-scale cryptocurrency purchase plans by small public companies may be temporary speculative activities.
The content is for reference only, not a solicitation or offer. No investment, tax, or legal advice provided. See Disclaimer for more risks disclosure.
SEC approval: Trump Media begins Bitcoin financial strategy
The Trump Media and Technology Group, which operates the social media platform "Truth Social," announced on the 13th that the U.S. Securities and Exchange Commission (SEC) has approved the registration filing for its Bitcoin financial strategy.
As a result, the company has been able to acquire Bitcoin (BTC) using the $2.3 billion (approximately ¥330 billion) in funds raised from about 50 institutional investors recently.
The amount expected to be acquired in Bitcoin has not been disclosed, and the purchase is optional, and the funds raised can also be used for general corporate purposes.
Trump Media announced at the end of May that it would implement one of the largest Bitcoin financial strategies of a publicly traded company through a private placement of common stock and non-interest-bearing convertible preferred bonds.
Trump Media's CEO Devin Nunes commented as follows.
We are actively implementing plans to expand our business and services and enhance our capabilities. We are simultaneously strengthening and growing our social media platforms, TV streaming platforms, and fintech brands.
At the same time, by establishing a Bitcoin financial strategy, the company aims to continue transforming itself into an essential enterprise for the expanding customer base of the Patriot Economy.
The term "Patriot Economy" mainly refers to a movement primarily among American conservatives and right-wing individuals that supports companies and products that they politically and ideologically resonate with, aiming to share values through economic activities.
Trump Media operates a streaming service called "Truth+" in addition to "Truth Social," and launched a fintech brand called "Truth.fi" in January of this year with an eye toward investing in cryptocurrency.
The company submitted the final prospectus to the SEC after receiving approval for the registration statement. This included the "Universal Shelf (general shelf registration)" as part of the content. This allows for the issuance of up to $12 billion (approximately 1.7 trillion yen) in stocks, corporate bonds, or warrants (stock options) at any time.
Trump Media stated, "For the time being, there are no plans to issue securities based on this universal shelf registration."
Approximately 84.7 million shares held by early investors have been registered for resale, which accounts for about half of the company's outstanding shares and 30% of the total issued shares.
What is Universal Shelf?
Universal Shelf Registration in English. It is a system used in financial markets such as the United States, allowing companies to register in advance to issue securities (stocks, corporate bonds, warrants, etc.) up to a certain amount.
Currently, there is an increasing number of companies investing in cryptocurrencies, including Bitcoin, around the world. As of May, the total Bitcoin held by 85 publicly listed companies and institutional investors worldwide has exceeded 800,000 BTC, reaching about 4% of the total supply.
Corporate purchases of Bitcoin are considered to be one of the factors supporting Bitcoin. On the other hand, there are experts who caution that the large-scale cryptocurrency purchase plans by small public companies may be temporary speculative activities.