Trump Media & Technology Group (TMTG), the parent company of Truth Social, has announced a $400 million stock buyback program, assuring investors that this initiative will not impact its ambitious Bitcoin treasury strategy. The buyback program, authorized by the company's Board of Directors, involves repurchasing shares and warrants through open market transactions. The repurchased shares are set to be retired, according to the company's statement on Monday.
The decision to implement a stock buyback comes as Trump Media reports a robust balance sheet with approximately $3 billion in cash. CEO and Chairman Devin Nunes framed the buyback as a vote of confidence in the company's strategic direction. He stated that with substantial cash reserves, Trump Media has the flexibility to support strong shareholder returns while exploring further strategic opportunities.
Trump Media emphasized that the stock repurchase program is funded separately from its Bitcoin treasury strategy. The Bitcoin treasury strategy was initiated with a $2.3 billion private placement offering. This offering involved the resale of approximately 56 million equity shares and 29 million shares underlying convertible notes to around 50 institutional investors, with the aim of accumulating Bitcoin.
The company intends to model its Bitcoin treasury plans after MicroStrategy, a firm known for its significant Bitcoin holdings. Trump Media's Bitcoin holdings will be managed by Crypto.com and Anchorage Digital, signaling institutional-grade infrastructure for the treasury program.
The buyback announcement follows Trump Media's recent filing with the Securities and Exchange Commission (SEC) for a proposed Bitcoin and Ethereum exchange-traded fund (ETF). The ETF would allocate 75% of its assets to Bitcoin and 25% to Ethereum, pending regulatory approval. Trump Media also plans to introduce a utility token within a Truth digital wallet and complete the launch of Truth.Fi ETFs this year.
Following the buyback news, DJT shares climbed 3.8% to $18.50 in early trading on Monday, as investors responded positively to the company's capital allocation plan. While the stock has lost almost half of its value in 2025 so far, this move signals potential for enhanced investor confidence and stock growth.
Trump Media's expansion into cryptocurrency is part of a broader diversification effort beyond its core social media platform. The company also operates the Truth+ streaming service and launched Truth.Fi, a fintech brand with crypto ambitions, in January of this year. Furthermore, Trump Media is planning to launch an ETF that would directly hold both Ether and Bitcoin, with a quarter of its assets in the former and the rest in the latter, planned for later this year.
The SEC gave Trump Media the green light to begin acquiring Bitcoin using funds raised from institutional investors earlier in June. Trump Media has not confirmed how much Bitcoin it has acquired so far, but said it will continue executing its cryptocurrency plans over time.
