Trump Media approves $400 million stock buyback

Trump Media & Technology Group, the parent organization of Truth Social, Truth+, and Truth.Fi, announced on Monday that its board has sanctioned a stock buyback plan of up to $400 million. Following this news, the company's stock saw an approximate 3% increase in premarket trading. Based in Florida and listed under the ticker DJT on both Nasdaq and NYSE Texas, Trump Media indicated that the buyback may encompass both common stock and warrants, to be executed through open market transactions. All shares repurchased will be retired. CEO Devin Nunes commented on the initiative, stating, "With around $3 billion on our balance sheet, we possess the flexibility to implement strategies that enhance shareholder returns while we continue to investigate additional strategic opportunities." This announcement comes on the heels of Trump Media's recent $2.5 billion fundraising effort from institutional investors, marking one of the largest bitcoin treasury initiatives undertaken by a public company. The company plans to utilize the raised funds—comprised of $1.5 billion in equity and $1 billion in convertible notes—to invest in bitcoin, with custody managed by Anchorage Digital and Crypto.com. Nunes referred to bitcoin as a "crown jewel," emphasizing that this decision aims to protect the company from perceived biases by financial institutions against conservative enterprises. Additionally, these funds are expected to assist in launching Trump-branded exchange-traded funds and other cryptocurrency products later this year, contingent upon regulatory approval. In a report from February, Trump Media & Technology Group disclosed a net loss of $400.9 million for the previous year, against an annual revenue of only $3.6 million.