Trump Media approves a 400 million USD stock buyback plan, committing to invest 2.5 billion USD in Bitcoin.
The cryptocurrency ETF backed by Trump faces scrutiny amid heightened market volatility and intense political backlash.
Trump Media and Technology Group Corp., which owns Truth Social, Truth+, and Truth.Fi, has just announced a plan to buy back shares worth 400 million USD.
At the same time, the company confirmed its commitment to holding Bitcoin [BTC] as part of its corporate treasury strategy, a move that has garnered significant political interest.
Analysis of Trump Media's stock buyback plan
The announcement was made on June 23, right when the U.S. Senate Permanent Investigations Committee questioned whether President Donald Trump exploited political influence to promote cryptocurrency-related projects.
Although initially Trump Media and Technology Group denied large investment plans in cryptocurrency, the company later revealed this significant strategic shift.
The company confirmed it has raised about 2.5 billion USD to purchase Bitcoin, including a private placement of approximately 2.3 billion USD.
Devin Nunes, CEO and Chairman of Trump Media, shared:
"The board has shown confidence in the company, its stock, and strategic plans. Trump Media currently holds about 3 billion USD on its balance sheet."
He continued:
"We have enough flexibility to take actions that support shareholder returns while continuing to seek additional strategic opportunities."
This event further heats the discussion about this media group's expansion ambitions in the cryptocurrency sector.
The group's aggressive cryptocurrency strategy
Trump Media and Technology Group (TMTG) is ramping up its ambitions in cryptocurrency to protect against what CEO Devin Nunes calls "financial discrimination against conservative businesses."
The company plans to use newly raised funds to develop cryptocurrency products branded Trump, including ETF funds pending approval.
Earlier this year, TMTG registered with the U.S. Securities and Exchange Commission (SEC) for a Bitcoin ETF and Ethereum fund named Truth Social. This fund is expected to allocate 75% of its assets to Bitcoin and 25% to Ethereum, to be listed on the NYSE Arca if approved.
Despite bold plans, the company is still facing financial difficulties, reporting a net loss of 400.9 million USD last year with revenue only reaching 3.6 million USD.
Meanwhile, President Trump has called for the establishment of a "strategic Bitcoin reserve" and a "digital asset reserve" in an executive order last March, reflecting heightened political interest in national cryptocurrency reserves.
When will a digital asset reserve become a reality?
Despite many ambitions, markets such as Polymarket estimate the probability of the United States having a national Bitcoin reserve by 2025 to be only about 30%.
The price of Bitcoin recently increased by 3.86% in 24 hours, trading around 105,284.61 USD, reflecting the impact of institutional capital flows.
However, warning signs accompany the situation as the MACD indicator suggests a weakening upward trend.
Source: Trading View
Data from Santiment also shows a noticeable increase in market volatility.
Source: Santiment
This information indicates that while significant capital flows from companies like Trump Media may temporarily support the market, they also create multiple layers of unpredictable price volatility.
Source: https://tintucbitcoin.com/trump-media-mua-400-trieu-usd-bitcoin/
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