Trump Media & Technology Group (TMTG), the company behind Truth Social and majority-owned by former U.S. President Donald Trump, has received approval from the U.S. Securities and Exchange Commission (SEC) to move forward with its Bitcoin treasury initiative. This regulatory milestone unlocks approximately $2.3 billion in capital, previously raised from around 50 institutional investors, which the company can now use to purchase Bitcoin or related assets at its discretion.
What Does the SEC Approval Mean?
The SEC’s declaration of effectiveness for TMTG’s registration statement means the company is now authorized to use its substantial capital to acquire Bitcoin as part of its treasury strategy. However, TMTG has not specified exactly how much Bitcoin it intends to buy or the timeline for these purchases. The company’s prospectus states that acquisitions will be made “in the amounts and on the timeline it deems optimal,” giving TMTG significant flexibility to respond to market conditions2.
Universal Shelf Registration: More Options for Growth
Alongside the Bitcoin treasury plan, TMTG’s filing includes a universal shelf registration, allowing the company to issue up to $12 billion in additional stock, debt, or warrants in the future. While this provides the firm with the ability to raise more capital quickly if needed, TMTG has clarified that there are no immediate plans to issue new securities under this shelf registration 2.
Shareholder Impact and Market Context
With the SEC’s approval, about 84.7 million shares held by early investors are now registered for resale, representing roughly half of the public float and 30% of all outstanding shares. TMTG trades on the Nasdaq under the ticker DJT. The move aligns TMTG with a growing trend among public companies to hold Bitcoin as a treasury asset, reflecting broader institutional interest in digital assets.
Strategic Vision and Future Plans
TMTG’s approach to its Bitcoin treasury is notably flexible. The company may also consider purchasing Bitcoin-related securities or, depending on market conditions, selling Bitcoin and reallocating proceeds into cash or other interest-bearing investments. This strategy is part of a broader push to expand TMTG’s footprint in social media, streaming, and fintech, including the recent launch of its Truth.Fi financial services brand.
“TMTG’s bitcoin strategy may also include purchasing bitcoin-related securities or, given certain market conditions, selling bitcoin and investing such proceeds in assets including cash, cash equivalents, or other interest bearing investments,” the company’s prospectus states.
