Trump Media reveals details of his Bitcoin investment plan

Trump Media & Technology Group Corp., the company behind the Social Truth Social Network and linked to the president of the United States, Donald Trump, has declared his intention to buy more Bitcoin (BTC) for strategic reserve, according to a form S-3 presented before the United States Stock Exchange and Securities Commission (SEC). The issuance of shares will be one of the capital collection forms for these BTC purchases.

In the document, Trump Media Express that Consider Bitcoin as a value reserve able to protect their finances from inflation and depreciation of Fíat currencies.

The purchase of Bitcoin does not yet have an assigned figure, given that the income of the most recent share offer will depend on factors such as the amount of actions and Warrants sold, as well as the associated operating expenses. The form indicates that the total amount collected could reach up to $ 12 billion assuming all the options included. But, it is important to note that these funds will be used for general corporate purposes and the acquisition of Bitcoin is only one of those purposes, between others.

Despite optimism – and, probably, by way of disclaimer legal- TMTG’s own prospect warns about the significant risks associated with this kind of asset. The company explicitly mentions Bitcoin’s high volatility as one of the main risk factors: its value can abruptly fluctuate in very short periods, which could generate considerable losses.

In addition, it recognizes regulatory uncertainty around cryptocurrencies. A sudden change in laws or in the approach of regulatory entities could limit or even prevent the purchase, possession or sale of Bitcoin by the company.

The company plans store your bitcoin in digital wallets that can be of specialized third parties. As cryptootics had reported weeks ago, the companies Crypto.com and Anchorage are those chosen for this purpose.

This arrival of Trump Media to the group of public contribution companies that consider Bitcoin as part of their financial strategy could have important implications in the ecosystem. While it is not yet a confirmed purchase, the single declaration of intention by a company so exposed media – giggly to former president Donald Trump – could feed the institutional adoption narrative of Bitcoin.