Key Highlights

Trump Media plans to repurchase shares worth up to $400 million, according to Monday’s announcement. The Truth Social parent company previously disclosed a Bitcoin treasury plan funded by a $2.3 billion private placement offering.

DJT stock performance and trading | Source: Plus500

Trump Media and Technology Group (ticker symbol DJT), the parent company of alternative social media platform Truth Social and fintech startup Truth.Fi, plans to repurchase shares worth up to $400 million.

“The Board of Directors voted to express confidence in our Company, our stock, and our strategic plans,” Trump Media CEO and Chairman Devin Nunes said in Monday’s statement. “Since Trump Media currently has approximately $3 billion on its balance sheet, we have the flexibility to execute actions like this to support strong shareholder returns, while continuing to explore additional strategic opportunities.”

Truth Social app store launch | Source: Axios

Trump Media’s repurchase of shares or warrants will be conducted through the open market at the company’s discretion. The company may also “from time to time” repurchase outstanding convertible bonds through open market transactions or private negotiations.

Corporate Bitcoin treasury development trends | Source: Bitcoin Magazine

According to the statement, the share repurchase will not change Trump Media’s previously announced Bitcoin BTC +4.28% treasury strategy, which is funded through a $2.3 billion private placement offering of stocks and bonds.

Earlier this month, the Securities and Exchange Commission (SEC) approved Trump Media to begin purchasing Bitcoin using funds raised from approximately 50 institutional investors.

Trump Media is just one of many crypto-related ventures by the Trump family. President Donald Trump’s eldest sons, Eric and Don Jr., are also involved in a Bitcoin treasury effort funded through Bitcoin mining revenue called American Bitcoin, while the not-yet-launched Trump DeFi project World Liberty Financial also has significant exposure to altcoins.

Company stock buyback strategy reasons | Source: Investopedia

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 have declined approximately 30% since announcing its corporate bitcoin treasury plans last month.