š¢ Trump Media & Technology Group has launched a major $400 million stock buyback program while reassuring investors that its $2.3 billion Bitcoin treasury strategy remains fully intact. Following the announcement, the companyās stock surged.
Stock Buyback Approved ā A Vote of Confidence
Trump Media, the parent company of Truth Social, announced that its board of directors has approved a repurchase program covering both common shares and warrants. The buyback will reduce the total number of shares in circulation and aims to strengthen investor confidence. Purchases will comply with all U.S. Securities and Exchange Commission (SEC) regulations.
CEO Devin Nunes stated:
āThis decision shows our leadershipās belief in the long-term potential of the company and the strategic direction weāre pursuing.ā
Bitcoin Strategy Remains Untouched
Despite initiating the large-scale stock repurchase, Trump Media confirmed that its $2.3 billion Bitcoin initiative is still fully active. In late May, the company announced a private issuance of equity and bonds aimed at building its crypto treasury.
The firm is modeling its approach after Michael Saylorās strategy, using corporate capital to acquire Bitcoin as a long-term store of value. Executives emphasized that the buyback and the Bitcoin acquisition plans are financially independent and will proceed in parallel.
$3 Billion in Cash on Hand
Trump Media disclosed it currently has access to approximately $3 billion in cash, allowing it to remain flexible in pursuing corporate investments and shareholder-focused actions. The company is also considering additional financial strategies, including the potential buyback of convertible bonds.
New Capital from DRW and Bitcoin ETF Filing
Last week, Trump Media secured a $100 million investment from DRW, a well-known trading firm based in Chicago. These funds support the broader strategy of acquiring Bitcoin on a large scale.
At the same time, Trump Media has submitted an application to launch a spot Bitcoin ETF to be listed on the NYSE Arca. The filing is in cooperation with Yorkville Advisors and Foris DAX, an asset manager associated with Crypto.com.
Stock Price Rebounds
Trump Media (DJT) shares rose more than 3% during early Monday trading, reaching $18.39 USD. This comes after a turbulent stretch in which the stock lost over 50% since January. The company now seems to be regaining investor trust through bold financial decisions and a strong crypto focus.
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