Monday, the parent company behind President Donald Trump's social media platform... – The Trump media announced the purchase of $2 billion in bitcoin, which was formally added to the expanding list of business holders of bitcoin.
This investment means that companies invested most of the approximately $2.5 billion raised earlier this year through the sale of shares and convertible instruments in bitcoin. The company's CEO, Devin Nunes, said that the choice was not just about return — it was about freedom.
“These assets help to ensure the financial freedom of our company, protect us from discrimination by financial institutions, and will create synergies with the practical tokens that we plan to introduce throughout the Troth Social ecosystem.” Devin Nunes said in his bulletin.
This investment has made Trump media among the rare business bitcoins holders: It is now the fifth-largest publicly held company in Bitcoin, exceeding the approximately $1.9 billion held by the Japanese company Metaplanet.
This investment follows a dynamic trend: several companies are now increasing bitcoin as a reserve asset. Some companies have even started to focus on encrypted currencies such as Taifung, Solana and XRP.
The strategy of Michael Saylor and pioneers such as Metaplanet have proven that this model can significantly increase the company ' s stock prices and attract investors and effectively transform the company ' s stock into a bitcoin exchange trading fund agent.
In the five years since the company began hoarding bitcoin, its share price has increased 12 times. At present, it holds approximately $72 billion in bitcoin, the largest of all publicly traded companies.
However, not everyone who imitates Seller has succeeded. The biotechnology company Semler Scientific introduced the Bitcoin Reserve Strategy in May 2024 and is now the 14th largest business holder with more than $570 million bitcoin. However, their share price fell by 26 per cent this year.
The well-known air-seller, Jim Chanos, warned companies using the Bitcoin reserve strategy to be at a risk similar to SPAC. As these companies sell their shares at a premium to finance their purchases of bitcoin, the stock value is linked to the inflation price of bitcoin.