Trump Media & Technology Group (TMTG) has received approval from the U.S. Securities and Exchange Commission (SEC) to use institutional investor funds for Bitcoin acquisitions.
Bitcoin Acquisition Details
TMTG, which is largely owned by former President Donald Trump, will be able to utilize approximately $2.3 billion for acquiring Bitcoin. However, the company did not specify when and how much Bitcoin it would purchase, only noting that they will proceed 'at times and amounts as deemed appropriate.'
Company Financial Flexibility
With the activation of the 'universal shelf' registration, TMTG gained the ability to quickly raise up to $12 billion through equity, debt securities, or financial rights issuance in the future. However, the company stated in a press release that 'there are currently no plans to issue any securities under the shelf registration,' suggesting that this move is more of a preparatory measure for potential future needs.
Market Dynamics After Public Listing
After SEC approval, approximately 84.7 million shares held by TMTG's early investors were registered for resale. This block represents about half of the company's publicly available shares and approximately 30% of the total issued shares, which could impact the share price of the company traded on Nasdaq under the ticker DJT.
Thus, SEC approval opens new opportunities for Trump Media & Technology Group, allowing it to diversify its investments and enhance its financial capabilities.
