Yesterday, we shared a leak, and today the cryptocurrency plan has been officially confirmed. Trump Media plans to acquire billions of dollars in Bitcoin (BTC) 
$77,690. Michael Saylor’s company’s strategy has started to be heavily imitated by publicly traded companies, with expectations of reaching 700 companies following this strategy by next year. However, there is an issue.
Trump and Bitcoin Acquisition
Trump Media & Technology Group (DJT) announced today that it will raise $2.5 billion from 50 corporate customers. Bitcoin purchases will be funded with $1 billion from convertible debt and $1.5 billion from stock sales.
Devin Nunes, CEO of Trump Media, stated, “We see Bitcoin as the pinnacle tool for financial freedom, and now Trump Media will hold cryptocurrency as a significant part of our assets.”
However, there is an issue. The company’s shares experienced a 10% drop following the announcement. It seems that DJT investors were not very pleased with this latest decision. The strategy has accumulated billions in BTC, with total assets exceeding $60 billion. Furthermore, thanks to this strategy, the price of MSTR shares has surpassed the dotcom bubble peak.
Corporate Demand for Bitcoin
Tesla, Strategy, and many other publicly traded companies now include TMTG. Before Trump took office, he had mentioned supportive steps for cryptocurrencies. At present, he is personally issuing cryptocurrencies and adding Bitcoin to his reserves. This situation will encourage US-based publicly traded companies to show more interest in Bitcoin.
As more companies acquire Bitcoin, the supply of BTC on exchanges is continuously decreasing. This dwindling supply could drive prices to abnormal levels in the near future due to fewer BTC being available for sale.
Holding Bitcoin reserves is highly profitable for publicly traded companies for two main reasons. First, there is a surge in demand for their shares due to their BTC reserves, boosting stock prices. Second, the company’s BTC reserve continuously grows with the spot price increase over the long term, offering much more attractive annual returns compared to other investment vehicles.
While DJT investors may not currently favor the situation, the expectation of a BTC-driven increase in share price could lead to significant growth in Trump’s company shares.
