Trump Media Finalises $2.32 Billion Deal to Acquire Bitcoin

Trump Media completes a $2.32 billion deal to establish a corporate Bitcoin treasury, marking a notable step in corporate Bitcoin adoption. The funds raised will bolster Bitcoin reserves while contributing to daily operations. Meanwhile, Bitcoin’s current market momentum is cautious, with analysts noting potential price fluctuations.

In a significant move for corporate Bitcoin adoption, Trump Media and Technology Group has finalised a $2.32 billion private placement aimed at establishing one of the largest Bitcoin treasuries by a U.S. public company. Announced on May 27, this deal is a defining step for the company, which operates the social media platform Truth Social and the fintech brand Truth.Fi. It shows a clear trend of increasing acceptance of Bitcoin as a strategic asset by corporations.

The private placement included the sale of about 55.86 million common shares at $25.72 each, generating approximately $1.44 billion. Additionally, Trump Media secured about $1 billion through 0.00% convertible senior secured notes, which are set to be repaid in 2028. Given that these notes convert at $34.72 per share, the overall acquisition cost could reach around $2.44 billion. After covering expenses, the company will use around $2.32 billion from this offering to bolster its Bitcoin reserves.

Devin Nunes, CEO of Trump Media, commented that this transaction aligns with the company’s broader financial objectives, which could help position it within the America First economy. The company plans to pair this new Bitcoin treasury with approximately $759 million already in cash and short-term investments, allowing for greater operational flexibility.

As the Bitcoin market responds, its price is showing tentative signs of movement. Currently below its 20-day moving average of about $106,139 and sitting at approximately $104,777, Bitcoin remains above crucial support levels, even while prices have seen a recent dip. The Relative Strength Index (RSI) reflects a neutral stance, having retreated from a prior peak, indicating that buyers are somewhat hesitant at this moment.

Market observers should note that according to the MACD indicator, the situation might be turning bearish, as momentum could be declining. As news unfolds within the crypto community, many remain hopeful for an uptick in market conditions despite the sideways trading trend.

Analyst DaanCrypto has pointed out interesting monthly price patterns, suggesting that many of Bitcoin’s price extremes occur early in the month. Approximately 80.7% of these events take place within the first twelve trading days. Historical patterns, like those observed on May 1 and June 5, reflect how Bitcoin often reverses directions after initial extremes, sustaining these trends until the month’s close.

This reliable pattern suggests that traders could see advantageous opportunities through the month, as initial support or resistance levels typically set price directions. Overall, while the outlook appears neutral yet slightly bullish, the developments surrounding Trump Media’s investment in Bitcoin could have implications for traders and investors alike.