The deal is the latest move by companies partly owned by President Trump and his family members to invest in crypto currency.
Trump Media & Technology Group, the parent company of Truth Social, said on Tuesday that it would raise $2.5 billion from institutional investors to invest in Bitcoin, continuing its transformation from a social media company into a financial services and crypto play.
Trump Media, whose largest shareholder is President Trump, said it would raise $1.5 billion from about 50 institutional investors by selling roughly 58 million shares.
The company is also planning to raise another $1 billion from the sale of a bond that can also be converted into shares at a later date.
The deal announced on Tuesday morning comes as the president and his family have become more involved in a number of crypto companies. Mr. Trump owns a little over 50 percent of Trump Media’s stock, making his roughly $2.7 billion stake one of his most valuable investments.
The sale of the new shares will potentially dilute the value of Trump Media’s stock, including the 115 million shares that Mr. Trump owns. The president’s shares are held in a trust managed by his eldest son, Donald Jr., who also is a Trump Media board member.
As part of the deal, which could close as soon as Thursday, the shares will be sold at a price of $25.72.
