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Trump Media, the parent of President Donald Trump's social-media platform Truth Social, announced a $400 million stock-repurchase program, which could reduce the number of shares outstanding by 10%.
Trump Media & Technology Group Corp (NASDAQ:DJT), the company behind the Truth social media platform, majority-owned by US President Donald Trump, announced that its board of directors has authorized an up to $400 million stock buyback. This repurchase may include both common stock and warrants, conducted through open market transactions, with all repurchased shares to be retired by the company.
Trump Media approves $400 million stock buyback
Trump Media & Technology Group Corp (NASDAQ:DJT), the company behind president Donald Trump's social media platform Truth Social, has filed for approval of a spot Bitcoin ETF with the Securities and Exchange Commission (SEC). This ETF aims to hold Bitcoin directly and offer shares to investors that reflect Bitcoin's price performance, providing a straightforward way for retail and institutional investors to gain exposure to Bitcoin without owning the cryptocurrency itself.
I'm initiating a buy on Trump Media & Technology Group Corp. due to its oversold technical setup and potential for a near-term bounce as sentiment stabilizes. Despite limited fundamentals and high volatility, I see the stock's current price as an attractive entry, especially with support at $19-$20. Trump Media's pivot to Bitcoin and blockchain, while risky, aligns with its core audience and could create new monetization opportunities.
CNBC's MacKenzie Sigalos reports from Las Vegas, where bitcoin's flagship event is in full swing and Trump Media has just unveiled a $2.5 billion bitcoin treasury — the latest move in the family's growing crypto empire.
Trump Media's $2.5B stock and bond sale to fund a Bitcoin treasury is highly dilutive and does little to address its tiny revenue base. Despite flashy crypto moves, the company remains deeply unprofitable, with Q1 revenues under $1 million and ongoing cash burn. Valuation is extremely stretched, trading at over 1,800 times annual sales, far above industry peers like Meta and Rumble.
Trump Media & Technology Group Corp (NASDAQ:DJT) has announced plans to raise $2.5 billion from around 50 institutional investors, with proceeds earmarked for one of the largest bitcoin treasury allocations by a listed company. The deal includes $1.5 billion in equity and $1 billion in convertible notes.
Trump Media's $2.5 billion bitcoin treasury deal with investors aims to safeguard against financial discrimination, enhancing Truth Social's financial strategy, CEO Devin Nunes says.
A report that Trump Media & Technology plans to dilute shareholders actually lifted its market value on Tuesday.
Donald Trump's media company is looking to raise $3 billion to invest in Bitcoin and other digital assets, intensifying concerns over potential conflicts of interest during his second term. The plan includes $2 billion in new equity and $1 billion through a convertible bond.