Donald Trump’s media company said on Tuesday that institutional investors will buy $2.5bn worth of its stock, with the proceeds going to build up a bitcoin reserve.

About 50 institutional investors will put up $1.5bn in the private placement for common shares in Trump Media and Technology Group, the operator of Truth Social and other companies, and another $1bn for convertible senior notes, according to an announcement from the company.

Trump Media said it intended to use the proceeds for the creation of a “bitcoin treasury”. The effort mirrors the president’s moves to create a “strategic bitcoin reserve” for the US government.

Trump, who referred to cryptocurrencies in his first term as “not money”, citing volatility and a value “based on thin air”, has shifted his views on the technology. During his campaign, he became the first major candidate to accept donations in the form of cryptocurrency. Since assuming office, he has launched his own cryptocurrency.

Last week, Trump rewarded 220 of the top investors in one of his other cryptocurrency projects – the $Trump memecoin – with a swanky dinner luxury golf club in northern Virginia, spurring accusations that the president was mixing his duties in the White House with personal profit.

During an event at his Mar-a-Lago club in Florida during his presidential campaign in May 2024, Trump received assurances that crypto industry backers would spend lavishly to get him re-elected. He spoke at the major bitcoin event during his campaign, and JD Vance, the vice-president, is slated to speak at the conference this week.