The parent company of Truth Social, Trump Media and Technology Group, founded by former U.S. President Donald Trump, has received the official greenlight by the U.S. Securities and Exchange Commission concerning its $2.3 billion Bitcoin treasury transaction. The clearance came in the form of the agency’s successful announcement of the company’s Form S-3 registration statement, dated June 13.
The approval allows Trump Media to proceed with the registration and resale of various securities. This includes around 56 million shares and 29 million more tied to convertible notes. These arrangements involved nearly 50 investors and collectively raised the full $2.3 billion, which the company plans to convert into Bitcoin as part of its new treasury strategy.
SEC filing clears way for Bitcoin treasury
The Form S-3 enables U.S. corporations to register different classes of securities. In this case, Trump Media used it to validate both debt and equity instruments. The same day it was declared effective, the company also submitted its final prospectus to the SEC. While the company has created a universal shelf to allow future issuance or fundraising, it stated that there are no immediate plans to act on it.
Trump Media CEO and President Devin Nunes said the company is moving forward with its expansion strategy across multiple areas. He emphasized that the firm is enhancing its social media, streaming, and fintech platforms while making Bitcoin part of its financial infrastructure.
Stock movement and Bitcoin positioning
On the day the SEC approved it, Trump Media stock declined 2.06 percent to close at 19.52 as shown on Google Finance. This followed after the company had already announced at the end of May that it had raised 2.5 billion to purchase Bitcoin. Previous speculations of the move had been denied before the company issued an official statement.
Nunes described Bitcoin as a tool for financial freedom and affirmed that it would play a central role in the firm’s asset management. The executive added that incorporating Bitcoin reflects the company’s commitment to adapting to evolving economic models.
ETF filing signals broader Bitcoin strategy
In addition to buying Bitcoin as part of its treasury, Trump Media is also considering a Bitcoin spot exchange-traded fund (ETF). The company applied with the SEC to list the ETF on June 5. The filing shows that the fund assets will mainly consist of Bitcoin stored with a custodian and will seek to match the cryptocurrency’s market performance.