Trump Media Announces $400 Million Stock Buyback Amid Bitcoin Investment Plans

Trump Media and Technology Group, the entity behind the Truth Social platform, has announced a $400 million stock buyback program. This initiative, authorized by the company's board of directors, is designed to repurchase up to $400 million in common stock. Importantly, the company has clarified that this stock buyback will not affect its plans to establish a Bitcoin treasury, which involves investing over $2 billion in funds.

The company initially refuted reports suggesting it was planning to raise approximately $3 billion to invest in cryptocurrency. However, it later confirmed a $2.5 billion capital funding initiative aimed at purchasing Bitcoin. According to a recent notice, Trump Media’s Bitcoin strategy includes a private placement offering of approximately $2.3 billion. This funding is part of a broader strategy to invest in Bitcoin, which has been a significant focus for the company.

The US Securities and Exchange Commission (SEC) approved the registration statement for Trump Media’s Bitcoin deal in June. The filing revealed that the $2.3 billion for the Bitcoin investment came from the resale of 56 million shares and 29 million shares tied to convertible notes as part of debt and equity agreements. This approval underscores the regulatory support for the company's ambitious Bitcoin investment plans.

In addition to its Bitcoin treasury plans, Trump Media has applied to launch a spot Bitcoin exchange-traded fund (ETF). Truth Social has also filed to list and trade shares of a dual ETF tied to Bitcoin and Ether (ETH). The SEC has been approving listings of spot Bitcoin ETFs since January 2024 and spot Ether ETFs since May 2024, indicating a growing acceptance of digital assets in the financial market.

Trump has also proposed, through a March executive order, the establishment of a “Strategic Bitcoin Reserve” and a “Digital Asset Stockpile.” These reserves would hold digital assets forfeited to the US government, with advisers suggesting other methods to expand the stockpile. However, lawmakers on the US Senate Permanent Subcommittee on Investigations have accused the president of using his position to enrich cryptocurrency firms by establishing these stockpiles.

The announcement from Trump Media came on the same day that California Senator Adam Schiff introduced legislation aimed at barring the US president, First Family, and other public officials from issuing, sponsoring, or endorsing digital assets. If this legislation were to pass, Trump Media's proposed Bitcoin strategy could potentially be in violation of the law, given its association with the president's namesake.