Trump Media Strengthens Bitcoin Treasury Plans Amid $400M Share Buyback

By: Eliza Bennet

Trump Media and Technology Group (TMTG) has confirmed its commitment to establishing a substantial Bitcoin treasury despite announcing a $400 million share buyback initiative. The company's board of directors authorized this buyback plan as a demonstration of confidence in TMTG's stock and its future growth strategies.

According to statements from TMTG CEO and Chairman Devin Nunes, the company remains firm in its strategy to procure Bitcoin using the $2.3 billion it has secured expressly for this purpose. "With nearly $3 billion available on our balance sheet, we’re positioned to deliver value to shareholders while embarking on strategic ventures like our Bitcoin treasury plan," Nunes noted. The share repurchase will be conducted in the open market at the discretion of the company.

Despite the volatility in its stock price, which fell 0.1% to $17.81 during the June 23 trading session and has experienced a nearly 48% drop since January, TMTG has aggressively pushed into the digital assets space. This move aligns with the broader crypto adoption trends being endorsed by former President Donald Trump himself. The company has not only earmarked funds specifically for Bitcoin acquisition but has also submitted filings for Truth Social-branded cryptocurrency ETFs aimed at Bitcoin and Ethereum investments.

This development has sparked significant interest and concern in Washington, where lawmakers are scrutinizing potential risks related to campaign fundraising and conflicts of interest. While rumors persist about the introduction of a Truth Social crypto wallet and token, TMTG has denied any immediate plans for such products. Meanwhile, amidst these strategic financial maneuvers, the cryptocurrency market is seeing fluctuations, with Bitcoin prices hovering near $101,779, marking a roughly 6% decrease in the last day.