The US Securities and Exchange Commission (SEC) has approved Trump Media’s Treasury registration, setting the firm on course to start buying Bitcoin.
The Trump Media and Technology Group (TMTG) disclosed this development in a press release on June 13, moving a step closer to resuming its Bitcoin accrual journey. The firm received a positive response from the US SEC after filing over a week earlier to start a $2.3 billion Bitcoin Treasury.
Trump Media a Step Away from Buying Bitcoin
Notably, the development followed a broader effort by public firms globally to establish a Bitcoin Treasury, as seen in the case of Trump Media, the operator of Truth Social and Truth.Fi, keyed into this growing obsession to hold Bitcoin on June 6.
On the said date, it filed an S-3 form with the US SEC to register the sale of its shares to eligible investors to buy Bitcoin. For the uninitiated, public companies use the filing to disclose their intentions to sell securities, such as stocks and shares.
Meanwhile, Trump Media had raised $2.3 billion from 50 investors through the resale of 56 million shares of equity and 29 million shares of convertible notes. The Friday filing from the US SEC has declared the venture effective, approving Trump Media’s ploy to establish one of the largest Bitcoin Treasuries by a publicly traded company.
Interestingly, the approval was not just for the $2.3 billion; it gave Trump Media a discretionary flexibility to pursue other means of growing its Bitcoin treasury strategy. Nonetheless, the company does not plan to issue securities under this shelf registration statement in the meantime.
Trump Media disclosed that it filed a corresponding final prospectus with the US SEC on the same day.
Reacting to the development, CEO and President Devin Nunes highlighted Trump Media’s vision to “aggressively” improve its offerings and capabilities, which includes a Bitcoin treasury.
Other Trump Media Crypto Venture
Meanwhile, Trump Media has also pursued other means of exposure to the Bitcoin and crypto scene. On June 5, it filed for a Bitcoin spot exchange-traded fund (ETF), aiming to join the booming sector.
The S-1 application with the US SEC disclosed Trump Media’s ambition to offer traditional investors alternative access to the pioneering cryptocurrency under the name the Truth Social Bitcoin ETF. Crypto.com would serve as the fund’s custodian, a development stemming from an earlier collaboration to create a basket of America First ETPs.
Growing Institutional Exposure to Bitcoin
Trump Media would become the latest to adopt the Bitcoin treasury strategy, a growing trend in the crypto sector. Several new debutantes globally have shown commitment to leveraging interest in the premier asset to raise capital for expansion.
GameStop, Al Abraaj, and Brazil’s Meliuz are new entrants, with firms like Metaplanet, Kurl, and Strategy having piled Bitcoin with debts from the capital market. Data from BitcoinTreasuries shows that 235 entities now hold Bitcoin, up by 27 in the past 30 days.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
