On May 27, 2025, Trump Media Technology Group (DJT.O) announced that it plans to raise $2.5 billion through the issuance of common stock and convertible notes to build an enterprise-level Bitcoin vault. This move not only marks the radical layout of the current US President Trump's family in the field of encryption, but also reflects the complex game between the White House power and private business interests. Although the group denied the previous report of the Financial Times on the $3 billion financing, its encryption strategy has caused severe market fluctuations and regulatory disputes.
1. Financing plan: controversial capital leverage
According to the announcement, the financing is divided into two parts: the issuance of $1.5 billion in common stock and $1 billion in zero-interest convertible senior notes, the latter of which sets the conversion price at a 35% premium to attract risk-seeking investors. If completed, the group's crypto asset reserves will exceed $3 billion (including $759 million in existing cash assets), second only to MicroStrategy. However, this plan is inconsistent with the $3 billion target reported by the media earlier. The group accused the Financial Times of misrepresenting the report, but did not deny the core intention of crypto investment.
It is worth noting that the group has harvested more than $2 billion in market value through the issuance of meme coins ($Trump, $MELANIA, etc.). Although 90% of investors have lost money (well, the editor is also one of the losers), the token shares controlled by the family still bring huge book gains. This financing is regarded as a continuation of "crypto capitalization", attempting to deeply bind corporate assets with Bitcoin prices, forming a closed-loop narrative of "crypto asset appreciation → stock price increase".
2. Dual drive of national strategy and commercial ambition
The Trump administration’s encryption policy shows obvious “public-private linkage” characteristics:
1. National level: In March 2025, Trump signed an executive order to establish a “strategic bitcoin reserve”, initially based on 200,000 bitcoins (worth about $18 billion) confiscated by the government, prohibiting their sale and planning to further legalize through the “Bitcoin Act”, with the goal of reserving 1 million bitcoins (5% of the total bitcoins) within five years. This policy is interpreted as incorporating bitcoin into the framework of U.S. economic sovereignty to hedge against the credit risk of the U.S. dollar. 2. Corporate level: Trump Media Group has accelerated its layout of crypto finance, including launching cryptocurrency ETFs, investing in decentralized financial brand TruthFi (budget of $250 million), and cooperating with Crypto.com and Anchorage Digital to manage assets. The trust fund managed by his son Donald Jr. holds 53% of the group's shares (worth $3 billion), further strengthening the family's control over crypto capital. Analysts pointed out that Trump is trying to form a synergy between policy support and corporate actions: the government provides legitimacy endorsement for the crypto industry, while family businesses use policy dividends to achieve capital expansion, and may even infiltrate the traditional financial system through the stablecoin USD1 (issued by World Liberty Financial) to form a new tool for US dollar hegemony.
III. Risks and Controversies: Regulatory Arbitrage and Systemic Concerns
Although Trump claims to "make the United States the world's cryptocurrency capital", his strategy faces multiple challenges:
-Conflict of Interest: The president's family is directly involved in the issuance and management of encrypted assets, suspected of using public power to empower private commercial interests. For example, the Trumpcoin dinner invited the top 220 holders to a secret meeting, which was criticized as a "political donation channel."
- Market volatility risk: Bitcoin prices have recently fluctuated violently between $108,000 and $110,000, and high leverage positions (such as the 40-fold long position of the whale James Wynn) have increased the risk of liquidation. If companies hold a large position in Bitcoin, they may suffer a financial crisis due to price fluctuations.
- Regulatory vacuum risks: Although many states in the United States have promoted the "Bitcoin Reserve Act" (such as Arizona and Illinois), there are still loopholes in the federal regulation of stablecoins. The "Genius Act" legalizes stablecoins, but does not clarify the government's credit endorsement responsibility, which may trigger a "too big to fail" financial systemic risk.
Fourth, global impact: new variables in crypto geopolitics
Trump's crypto strategy is reshaping the global financial landscape:
1. Game of dollar hegemony: If stablecoins are widely circulated, they may weaken the traditional dollar settlement system, but the United States is trying to consolidate its hegemony through digital currencies anchored to the dollar. Paradoxically, Europe is accelerating the layout of the digital euro to resist the impact of crypto dollarization.
2. National reserve competition: The Czech central bank plans to allocate 5% of its foreign exchange reserves (about 7 billion euros) to Bitcoin, becoming the first Western central bank to publicly engage in crypto assets, reflecting the spillover effects of Trump's policies. 3. Struggle for technological sovereignty: Dubai launches the first compliant real estate tokenization project in the Middle East, China accelerates the pilot of digital RMB, and the global central bank digital currency (CBDC) competition is heating up, and crypto assets have become a new battlefield in geo-economics. The Trump administration's encryption strategy is essentially a super experiment that interweaves political power, commercial interests and technological innovation. Its short-term goal may be to raise funds for the 2026 mid-term elections, and in the long term, it attempts to reconstruct the United States' financial hegemony in the digital age. However, if this "public-private interest bundling" model gets out of control, it may trigger more serious market turmoil and a crisis of trust. As the New York Times said, cryptocurrencies are launching a "financial coup", and Trump is both the promoter of this revolution and the bearer of its costs.
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