Trump Media and Technology Group (DJT) Confirms Major Capital Raise Following Denial of Reports as “Dumb” and “Fake News”

This article is not intended as investment advice. The author does not hold any positions in the stocks mentioned.

Trump Media’s Contradictory Actions Spark Controversy

In a remarkable turn of events, Trump Media and Technology Group’s investor relations department has undermined its credibility by following through on a capital-raising plan reported by the Financial Times. This comes just hours after dismissing the publication’s report as “dumb” and “fake news.”

Financial Times Breaks the Capital-Raising News

The Financial Times recently revealed that Trump Media is gearing up to secure $3 billion in new funding aimed at investing in cryptocurrencies. The plan reportedly involves raising $2 billion through equity financing and an additional $1 billion via convertible notes.

This announcement is expected to coincide with the Bitcoin 2025 event in Las Vegas later this week, potentially positioning Trump Media at the forefront of the cryptocurrency conversation.

Initial Denial and Subsequent Admission

In a swift response to the FT’s report, the IR department of Trump Media vehemently rejected the claims. When reached for confirmation, they went as far as to label both the Financial Times and Reuters as “fake news”outlets.

“Apparently the Financial Times has dumb writers listening to even dumber sources.”

However, only a day later, the narrative changed dramatically. Trump Media announced that it had signed subscription agreements with approximately 50 institutional investors, aiming to raise about $1.5 billion by selling common stock and an additional $1 billion through convertible senior secured notes.

Financial Outcomes and Future Plans

The company anticipates that this offering will be finalized by May 29, with projected gross proceeds totaling around $2.5 billion. The funds will primarily focus on establishing a Bitcoin treasury, marking the initial step towards a strategic acquisition fund previously approved by the board of Trump Media.

This fund aims to explore partnerships, mergers, and acquisitions that align with the principles of the “America First Economy.”Notably, the board had previously sanctioned up to $250 million for developing customized Separately Managed Accounts (SMAs) and Exchange-Traded Funds (ETFs) under its Truth. Fi brand.

In April, Trump Media successfully launched this initiative in collaboration with Yorkville America Equities and Index Technologies Group, both significant players in investment solutions.

Conclusion

As Trump Media navigates its capital-raising endeavors and potential cryptocurrency ventures, the situation serves as a reminder of the volatile nature of financial communications and the importance of transparency, especially within rapidly evolving markets.

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