Trump Media & Technology Group (TMTG), the company behind Truth Social, is reportedly planning to raise a staggering $3 billion for cryptocurrency investments, with a particular focus on bitcoin.
The move, which includes $2 billion in fresh equity and another $1 billion through a convertible bond, comes at a time when the company is grappling with severe financial strain and plunging revenues from its core media business.
According to FT, the capital raise, still under deliberation, is expected to be announced ahead of a major cryptocurrency investor gathering this week. The event will feature key Trump allies and family members, including Vice President JD Vance and Trump’s sons, Donald Jr. and Eric Trump, signaling a coordinated push to reposition the company and its brand within the crypto space.
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While the timing of the investment and the final terms remain fluid, the decision marks a sharp turn from TMTG’s original mission: to build a media alternative to mainstream platforms, driven by Trump’s ideological and political base. With Truth Social failing to live up to user growth and revenue expectations, the pivot to digital assets is being interpreted by many observers as a de facto divestment from its media ambitions.
“Trump Media Group just announced plans to raise $3 billion to buy cryptocurrencies. Instead of salvaging a failed business by borrowing a page from @Saylor’s playbook, it’s too bad Trump’s company can’t open a factory and produce real products to help Americans avoid his tariffs,” Peter Schiff, Chief Economist & Global Strategist at Euro Pacific, said.
A Company in Trouble
TMTG’s financial troubles have been mounting steadily. In 2024, the company posted a net loss of over $400 million, even as its total annual revenue fell to just $3.6 million — a figure considered paltry for a publicly traded tech firm. Truth Social, its core product, has struggled to attract advertising dollars and user engagement, both of which are vital for survival in the social media marketplace.
In its most recent quarterly filing, TMTG reported an alarming $327.6 million loss against revenue of just $770,500 — numbers that cast doubt on the viability of Truth Social as a business model. The company has repeatedly attributed its losses to high operating costs, legal expenditures, and a challenging advertising landscape. But observers have pointed to a deeper problem: the platform’s limited appeal beyond Trump’s political base and its failure to scale into a broader market.
From Social Media to Crypto: A Calculated Escape?
Against this bleak backdrop, TMTG’s shift toward cryptocurrency investment appears more like a financial maneuver than a genuine growth strategy. Industry analysts suggest the company is moving funds, or planning to attract new ones, into bitcoin and other crypto assets as a hedge against the growing uncertainty of its media revenue.
The timing of this move is particularly telling. TMTG recently signed a binding agreement to launch a suite of retail investment products, including crypto offerings and exchange-traded funds (ETFs), all framed around Trump’s “America First” economic policies. These products are aimed at politically aligned retail investors and serve to deepen the fusion between the Trump political brand and the digital asset economy.
However, regulatory watchdogs and government ethics officials have raised concerns about the company’s growing entanglement with unregulated financial products. There is concern that TMTG’s crypto ambitions could attract scrutiny over potential conflicts of interest, especially given Donald Trump’s return to the White House and the renewed influence his administration may exert over financial policy and regulatory agencies.
Still, supporters of the move argue that it reflects forward-thinking adaptability. TMTG, they say, is embracing innovation and responding to market realities by diversifying its portfolio — even if that means steering away from the social media platform that launched it.
In response to reports about the planned capital raise, a spokesperson for Trump Media dismissed the coverage as “fake news,” targeting the media outlets involved without denying the story’s substance. The company has remained tight-lipped about the exact structure or timeline of the investments but has hinted at a broader strategy to integrate financial technology into its platform ecosystem.
This strategy, however, raises critical questions about the company’s future. Is TMTG transitioning into a crypto-focused investment vehicle because it sees greater opportunity there, or is it simply fleeing a collapsing media venture in search of a lifeline?
For now, the numbers suggest the latter. With Truth Social posting negligible income and the parent company hemorrhaging capital, the promise of crypto riches appears to be less about strategic expansion and more about financial survival.