Key Insights
- Trump Media bought 450 Bitcoin, its first BTC purchase in three months.
- The company recently merged with TAE Technologies to become one of the few publicly traded companies focused on nuclear fusion.
- Bitcoin is up 4% over the past seven days and is inching closer to $90,000, despite volatility remaining.
Trump Media and Technology Group has bought 450 Bitcoin for $40 million. This marks the first Bitcoin purchase by the company in three months.
According to Bubblemaps, the company purchased the BTC from exchanges and transferred it to its wallet.
New Purchase Shows Trump Media’s Commitment to Bitcoin
The new purchase reaffirms Trump Media’s status as a Bitcoin treasury company after months of no accumulation. The company, which is majority owned by a Donald Trump revocable trust, first pivoted to a Bitcoin treasury in May.
At the time, it had announced that it would raise around $2.5 billion for its Bitcoin purchases. $1.5 billion was raised through the sale of stock, while an additional $1 billion was secured through convertible notes.
Since then, the firm has acquired approximately $2 billion worth of Bitcoin. In an SEC filing back in July, it disclosed that BTC accounts for two-thirds of its approximately $3 billion in liquid assets.
However, Bitcoin has declined since then, and Trump Media has made no purchases since its last one, which came in September. Interestingly, the latest purchase comes just a few days after reports emerged that Trump Media is merging with TAE Technologies, a nuclear energy company.
The $6 billion merger would see Trump Media add nuclear fusion to a business line that already includes Bitcoin treasury and social media. According to the reports, the company will continue to trade under the DJT ticker and will become one of the few publicly traded nuclear fusion companies.
Bitcoin Teases $90,000 after 4% Gain in a Week
Meanwhile, Trump Media’s recent Bitcoin acquisition comes at a time when the flagship asset is in an uptrend. Although it remains highly volatile, recent performance has shown price gains.
According to CoinMarketCap, BTC is up 4% in the past seven days and is currently trading at $89,000. The cryptocurrency had also risen by around 1% today, despite its year-to-date performance remaining a net negative 5%.
The recent purchase by Trump Media will only serve as a positive catalyst for the asset. While it is not a major purchase like Strategy’s billions worth of BTC accumulation, President Trump’s connection to the company makes it a market mover.
Nevertheless, Trump Media accumulation might not be enough to cause any major price movement for BTC. Many analysts believe that Bitcoin is already in a cool-down phase. There are mixed reactions on whether it marks the start of the bear market or another accumulation phase.
According to CryptoQuant, Bitcoin network activity has decreased, confirming that the market is in a downtrend. However, the analysts noted that periods of lower activity, such as this, usually precede greater volatility.
Still, they do not expect the drawdown to be as devastating as previous cycles. They noted that the broader user base is a signal of a more resilient ecosystem.
Oluwapelumi Adejumo is an experienced cryptocurrency journalist who has contributed to leading blockchain news platforms, including CryptoSlate and BeInCrypto.
