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Highlights
- Trump Media approved a $400M share buyback, signaling strong confidence in its stock and long-term goals.
- The company maintains its $2.3B Bitcoin strategy, aiming to build a crypto treasury like MicroStrategy.
- Trump Media filed to launch a spot Bitcoin ETF and secured a $100M investment from DRW.
Trump Media stock rose Monday after the company announced a $400 million share repurchase plan, while affirming its commitment to its multibillion-dollar Bitcoin strategy.
Trump Media Share Buyback Program Approved
According to a press release, Trump Media & Technology Group, the parent company of Truth Social, said Monday that its board has authorized a share repurchase of up to $400 million. The company confirmed the buyback will include either common stock or warrants. Purchases will be made in open market transactions and all repurchased shares will be retired.
The company stated the buyback will follow all applicable rules and regulations set by the Securities and Exchange Commission. It said this decision shows its confidence in the company’s long-term business goals. CEO Devin Nunes said,
“The Board took a vote of confidence in our Company, our stock, and our strategic plans.”
The company also noted that this repurchase plan is a separate action and does not affect its previously announced Bitcoin investment program. Trump Media said it has around $3 billion in cash on hand, allowing flexibility for both corporate initiatives and investor-focused moves.
Bitcoin Strategy Remains in Effect
Despite launching a large share repurchase program, Trump Media confirmed that its $2.3 billion Bitcoin strategy remains active. In late May, the company announced a private placement offering, involving both stock and debt, to fund its plan to build a Bitcoin treasury.
As of now, the company continues to move forward with its cryptocurrency goals. Trump Media previously said it aims to follow a model similar to Strategy, which is led by Michael Saylor. Executives said both programs — the buyback and the Bitcoin purchases — are independently funded and will not interfere with one another.
The company emphasized that its financial position supports the dual strategies. It also suggested that more steps may be taken in the future as it explores additional financial moves, including possible buybacks of convertible notes.
DRW Investment and ETF Filing Signal Ongoing Crypto Focus
Last week, Trump Media investment secured a $100 million from DRW, a Chicago-based trading firm. The funds are part of a larger strategy to support the $2.3 billion Bitcoin allocation. Trump Media has not confirmed how much Bitcoin it has acquired so far, but said it will continue executing its cryptocurrency plans over time.
In addition to the investment, Trump Media has also filed to launch a spot Bitcoin exchange-traded fund (ETF). The ETF would be listed on NYSE Arca, according to a filing made in partnership with Yorkville and Foris DAX, the custodian operated by Crypto.com.
Trump Media shares (DJT) rose more than 3% during early Monday trading. The price increased to $18.39 by mid-morning Eastern Time. The rise comes after weeks of volatility in the stock, which has dropped over 50% since January.
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