In this news:
Three senior leaders at Trump Media & Technology Group have launched a new blank-check company aiming to acquire a firm in crypto or related industries—as the Trump administration seeks to shape the sector—according to a registration statement filed Friday with the Securities and Exchange Commission.
President Donald Trump talks with Trump Media CEO Devin Nunes at the Republican National Convention ... [+] in Milwaukee in July 2024. (Tom Williams/CQ-Roll Call, Inc via Getty Images)
CQ-Roll Call, Inc via Getty Images
Renatus Tactical Acquisition Corp I, a special purpose acquisition company incorporated in the Cayman Islands, is looking to raise at least $179 million through both an initial public offering and private placement, funds it plans to use to acquire another business.
The firm’s leadership has deep ties to President Donald Trump’s media company: Renatus Tactical CEO Eric Swider is a Trump Media board member and led the company that merged with it; Devin Nunes, CEO, president and chair of Trump Media, also chairs Renatus Tactical’s board; and Alexander Cano, Renatus Tactical’s COO, was president and secretary of the firm that merged with Trump Media.
Renatus Tactical is targeting acquisitions in the cryptocurrency and blockchain, data security, and dual-use technology sectors, industries with heavy government involvement as regulators or major clients, according to its SEC filing.
Trump appointees lead the SEC, Department of Justice and Federal Trade Commission, agencies that oversee regulatory and legal reviews of mergers.
Swider, Nunes and spokespeople for Trump Media did not immediately respond to requests for comment.
Key Background
Nunes, Swider and Cano were all deeply involved in the drama-filled merger between Trump Media and Digital World that made Trump’s media company and Truth Social platform public. Nunes resigned from Congress to lead Trump Media in January 2022, while Swider was a board member of Digital World when it first registered with the SEC in 2021. Cano also was with Digital World in 2021, starting off as the contact person for investor relations. The merger was announced in October 2021. But the deal wasn’t approved until March 2024. In the intervening 29 months, the SEC charged a former Digital World board member and two others with insider trading related to the company (the board member was later found guilty, while the two other people pleaded guilty); Digital World was forced to admit that two years’ worth of financial statements were unreliable and that it was at risk of being delisted from Nasdaq for failing to file a mandatory report; and Digital World agreed to pay the SEC $18 million to settle fraud charges for “making material misrepresentations” in its filings for entering merger discussions with Trump Media prior to its IPO. After the merger was completed, the turmoil continued: two Trump Media cofounders sued the company, alleging it diluted their ownership stakes, prompting Trump Media to counter sue, claiming the cofounders had “failed spectacularly at every turn.” And Trump Media was forced to change auditors after the SEC charged its accountant, BF Borgers, with “massive fraud” involving more than 250 clients (Borgers agreed to pay a $12 million fine and an industry ban).
What Company Will Renatus Tactical Buy?
We don’t know. While the company’s registration said it plans to focus its search for a merger target in the cryptocurrency and blockchain, data security and dual use technologies markets, the company can pursue an acquisition in any industry.
$178,942,500: The amount Renatus Tactical hopes to raise, selling 17.5 million shares to the public at $10 each and 3,942,500 warrants at $1 a piece in a private placement.
Crucial Quote
“The current administration has taken unprecedented steps to integrate digital assets into the national financial strategy,” Renatus Tactical stated in its SEC filing, explaining its focus on the cryptocurrency and blockchain sector.
Trump’s connection to the founders of Renatus Tactical may not be entirely beneficial for the company. In its risk disclosures, the company warns that “third parties may not want to engage with us to provide services due to the affiliation of our management team and our board of directors with TMTG and President Donald J. Trump.”
Surprising Fact
Attorney General Pam Bondi consulted for Renatus LLC, a separate company also founded by Eric Swider, and received $3 million worth of Digital World shares for her services.
What To Watch For
Future SEC filings that could reveal additional Trump Media insiders involved with Renatus Tactical.
Devin Nunes pulled in $47 million as CEO of Trump Media in 2024—earning a $1 million base salary, $600,000 bonus, $44.1 million in stock awards, and $1.2 million in additional stock compensation.
Forbes Valuation
Donald Trump is worth about $4.8 billion, with Trump Media shares making up the bulk of his fortune.
Editor’s Note
In November 2023, Trump Media sued 20 media outlets, including Forbes, for reporting that included calculations of its financial results while still a private company. The defendants have moved to dismiss the claims.
Further Viewing
Further Reading
Trump Media Paid Donald Trump Jr. Nearly A Quarter Of Its Annual Revenue. He Attended Just Two Board Meetings (Forbes)
Here’s How Much Trump Has Made By Not Selling His Truth Social Stock (Forbes)
Trump’s Social-Media Business Planned For His Conviction Before He Was Even Charged (Forbes)
Trump-Linked SPAC Spent $10.8 Million On Legal Fees Amid Regulatory Probes (Forbes)
Major Trump Media Shareholder Offloads Nearly Entire Stake (Forbes)
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Zach Everson
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