Trump Media's $400 million stock repurchase plan will not alter its multi-billion Bitcoin treasury designs
Quick Take Trump Media plans to repurchase up to $400 million worth of shares, according to an announcement on Monday. The Truth Social parent company previously disclosed a Bitcoin treasury scheme funded by a $2.3 billion private placement offering.
Trump Media and Technology Group (ticker DJT), the parent company behind alternative social media site Truth Social and fintech startup Truth.Fi, plans to repurchase up to $400 million worth of shares.
"The Board took a vote of confidence in our Company, our stock, and our strategic plans," Trump Media CEO and Chairman Devin Nunes said in a statement on Monday. "Since Trump Media now has approximately $3 billion on its balance sheet, we have the flexibility to take actions like this which support strong shareholder returns, as we continue exploring further strategic opportunities."
Trump Media’s repurchases of either stocks or warrants will be conducted through the open market at the firm’s discretion. It may also, "from time to time," repurchase its outstanding convertible notes in open-market or privately negotiated transactions.
According to the statement, the stock repurchasing will not alter Trump Media's previously announced Bitcoin treasury strategy, which is funded through a $2.3 billion private placement offering of stock and debt.
Earlier this month, the Securities and Exchange Commission gave Trump Media the greenlight to begin acquiring Bitcoin using funds it raised from approximately 50 institutional investors.
Trump Media is just one of the Trump family's many crypto-related ventures. President Donald Trump’s eldest sons, Eric and Don Jr., are also involved in a Bitcoin treasury effort funded through Bitcoin mining proceeds called American Bitcoin, while the not-yet-live Trump DeFi project World Liberty Financial also has significant exposure to altcoins.
In addition to Truth Social, Trump Media also operates the Truth+ streaming service and launched Truth.fi, a fintech brand with crypto ambitions, in January of this year.
DJT shares are down about 30% since announcing its corporate bitcoin treasury plans last month.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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