Trump Media & Technology Group Corp ( DJT ) shares are volatile Tuesday after the company announced plans to raise $2.5 billion to buy bitcoin.

What To Know: Trump Media ( DJT ) on Tuesday announced that it entered into subscription agreements with approximately 50 institutional investors to issue and sell approximately $1.5 billion in the company’s common stock and $1 billion in principal amount of 0.00% convertible senior secured notes in a private placement.

The company said it plans to use the proceeds to create a Bitcoin (CRYPTO: BTC) treasury. The offering is expected to close on or about May 29. Trump Media ( DJT ) shares were last down about 3.5% at $24.95, according to Benzinga Pro.

“We view Bitcoin as an apex instrument of financial freedom, and now Trump Media ( DJT ) will hold cryptocurrency as a crucial part of our assets,” said Devin Nunes, chairman and CEO of Trump Media ( DJT ).

“Our first acquisition of a crown jewel asset, this investment will help defend our Company against harassment and discrimination by financial institutions, which plague many Americans and U.S. firms, and will create synergies for subscription payments, a utility token, and other planned transactions across Truth Social and Truth+.”

Shares were initially trading higher premarket following reports the company was expected to announce plans to raise $2 billion in new equity as well as another $1 billion through a convertible bond to buy crypto such as bitcoin.

Trump Media ( DJT ) is the parent company of Truth Social. It was co-founded by President Donald Trump, who’s family maintains a controlling stake in the company.

The report indicated that a formal announcement could come during the Bitcoin Conference in Las Vegas this week. Vice president JD Vance, crypto tsar David Sacks and Trump’s son’s Donald Jr and Eric are all expected to speak at the event.

Bitcoin surged to new all-time highs last week as inflows into ETFs tracking bitcoin continue to rise. The price of bitcoin may also be benefitting from a recent surge in risk assets as broader markets bounce back from lows reached in April. Bitcoin was trading around $109,615 at the time of publication Tuesday.

DJT Price Action: Trump Media ( DJT ) shares are down about 24.5% since the start of the year. The stock has traded as high as $54.68 and as low as $11.75 over a 52-week period. Shares closed up about 4.6% on Friday and were up another 8.79% Tuesday morning, before pulling back on the official announcement, according to Benzinga Pro.

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