TMTG to Raise $3 Billion for Cryptocurrency Investment
Trump Pursues Pro-Cryptocurrency Policies... Family Engages in Related Businesses
Growing Controversy Over Conflicts of Interest
The media company owned by U.S. President Donald Trump is seeking to raise $3 billion (approximately 4.1 trillion won) to purchase cryptocurrencies such as Bitcoin. As President Trump and his family, who are pursuing pro-cryptocurrency policies with the goal of making the United States the "cryptocurrency capital," continue to enter related businesses, controversy over conflicts of interest is growing.
On May 26 (local time), the Financial Times reported, citing multiple sources, that Trump Media & Technology Group (TMTG) plans to raise a total of $3 billion to invest in cryptocurrencies such as Bitcoin. The funding will be raised through a $2 billion new share issuance and a $1 billion convertible bond offering.
TMTG is the parent company of Truth Social, the social networking service created by President Trump. After winning last year's presidential election, President Trump, the majority shareholder, transferred his 53% stake to a trust overseen by his eldest son, Donald Trump Jr. Donald Trump Jr. holds sole investment and voting rights over TMTG's shares.
This fundraising plan is expected to be announced at a cryptocurrency-related event to be held in Las Vegas this week. U.S. Vice President J.D. Vance, President Trump's eldest son Donald Trump Jr., his second son Eric, and David Sacks, the White House AI and cryptocurrency czar, are scheduled to attend and deliver speeches.
President Trump has declared that he will make the United States the "cryptocurrency capital" and is pursuing friendly cryptocurrency policies. Immediately after taking office, he signed an executive order for a "cryptocurrency strategic reserve," which allows the federal government to directly hold cryptocurrencies. Since President Trump's victory in last year's presidential election, the price of Bitcoin has continued to rise, reaching an all-time high of $109,000 last week. In this context, criticism has emerged that a company in which President Trump is the majority shareholder is taking advantage of the "presidential opportunity" to profit by directly purchasing Bitcoin.
The Trump family has already entered the cryptocurrency business in various ways. His eldest son Donald Trump Jr. and second son Eric established a Bitcoin mining company called American Bitcoin and are seeking to list it on the Nasdaq. Before the official inauguration, President Trump and his wife each launched meme coins named after themselves: "Trump Coin ($TRUMP)" and "Melania Coin ($MELANIA)." Recently, controversy arose when President Trump held a private dinner with Trump Coin investors. In addition, the Trump family is involved in a variety of businesses, including non-fungible token (NFT) trading cards and stablecoins.
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