Trump Media & Technology Group (DJT) President Donald Trump’s social media company is going full-swing on its Bitcoin (BTC-USD) reserve project amid an ugly public showdown with billionaire Elon Musk. The company filed an S-3 Registration Statement with the U.S. Securities and Exchange Commission (SEC) after the market closed yesterday, disclosing that it had raised roughly $2.3 billion in total proceeds through debt and equity subscription agreements with about fifty investors.
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DJT stated that the $2.3 billion in proceeds would be used to create the company’s previously announced Bitcoin Treasury and for general corporate purposes. At the same time, the parent company of Truth Social filed an S-1 statement with the SEC in accordance with its plans to launch a new exchange-traded fund (ETF), called the Truth Social Bitcoin ETF.
Meanwhile, a report from Politico noted that White House staff had arranged a phone call with Musk to help ease escalating tensions between the Tesla (TSLA) CEO and the President. Following the news, DJT stock is trending up 1.1%, while TSLA stock has jumped 5.5% in pre-market trading at the time of writing.
Trump Media Sets Stage for Strategic Fundraising
Additionally, DJT filed a universal shelf statement announcing its intent to sell up to 84.66 million common shares by current holders, including roughly 56 million common equity shares and 29 million shares underlying convertible notes.
The mixed-shelf filing could enable Truth Social raise up to $12 billion in total. However, the company does not intend to issue any of these securities in the near term. Instead, the filing provides enough cushion and flexibility for future fund raising to undertake potential mergers and acquisitions, and the use of various capital-raising tools.
What Is the Future of DJT Stock?
We used TipRanks’ Technical Analysis Tool to assess the outlook for DJT stock. The tool indicates a “Strong Sell” consensus, with three indicators showing Bullish signals, compared to six Neutral and 13 Bearish indicators.
See more DJT Technical analysis
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