Trump Media Announces $400 Million Stock Buyback Amid Bitcoin Push

Trump Media and Technology Group Corp., the company behind Truth Social, Truth+, and Truth.Fi, has announced a $400 million stock buyback plan. This move comes as the company reaffirms its commitment to holding Bitcoin as part of its corporate treasury strategy, a decision that has garnered significant political attention.

On the 23rd of June, the company made this announcement amidst concerns from the U.S. Senate Permanent Subcommittee on Investigations regarding potential political influence benefiting crypto-related ventures. Initially, Trump Media and Technology Group denied plans for heavy cryptocurrency investment, but later revealed a strategic shift. The company confirmed securing around $2.5 billion in funding, specifically for acquiring Bitcoin. This initiative includes a private placement offering totaling around $2.3 billion.

Trump Media’s CEO and Chairman, Devin Nunes, commented on the development, stating, “The Board took a vote of confidence in our Company, our stock, and our strategic plans. 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.” This announcement has intensified discussions about the media conglomerate’s broader ambitions in the crypto space.

Trump Media and Technology Group is aggressively pushing into cryptocurrency, aiming to protect itself from what CEO Devin Nunes describes as ‘financial discrimination against conservative businesses.’ The company plans to use recently raised funds to develop Trump-branded crypto products, including exchange-traded funds (ETFs), pending regulatory approval. Earlier this year, TMTG filed a registration with the U.S. Securities and Exchange Commission for a proposed Truth Social Bitcoin and Ethereum ETF, which would allocate 75% of its assets to Bitcoin and 25% to Ethereum and be listed on NYSE Arca if approved.

Despite these ambitious plans, TMTG continues to face financial challenges, posting a net loss of $400.9 million last year on revenues of just $3.6 million. Meanwhile, President Trump has called for the creation of a “Strategic Bitcoin Reserve” and a broader “Digital Asset Stockpile” through a March executive order, highlighting growing political interest in national crypto reserves. His advisors have also proposed additional strategies to expand this digital stockpile.

Despite these ambitious plans, the likelihood of the U.S. having a national Bitcoin reserve by 2025 is only 30% according to prediction markets like Polymarket. The recent price movement of Bitcoin reflected the impact of institutional involvement, with the asset climbing in value. However, this surge came with signs of caution as indicators pointed to a weakening bullish trend. This suggests that while high-profile capital inflows like those from Trump Media may offer temporary support, they also introduce new layers of price turbulence into the market.