Trump Media approves $400 million stock buyback

Published: Monday, June 23, 2025 at 1:28 pm

Trump Media Announces $400 Million Stock Buyback

Trump Media & Technology Group (TMTG) has announced a $400 million stock buyback program. This move comes on the heels of a significant fundraising effort last month, where the company secured $2.5 billion from institutional investors.

The company plans to use the funds from the recent raise, which includes $1.5 billion in equity and $1 billion in convertible notes, to purchase Bitcoin. The company's CEO, Devin Nunes, described Bitcoin as a "crown jewel" and stated the move is intended to protect the company from what he perceives as financial discrimination against conservative businesses. The company has selected Anchorage Digital and Crypto.com to provide custody for the Bitcoin holdings.

In addition to the Bitcoin investment, the funds will also support the launch of Trump-branded exchange-traded funds and other cryptocurrency products later this year, contingent on regulatory approval. TMTG clarified that the stock buyback will be funded separately and will not impact the capital allocated for its Bitcoin treasury initiative.

Financially, TMTG reported a net loss of $400.9 million for the full year, with annual revenue of $3.6 million. The company attributed the losses to legal fees and a revised advertising revenue-sharing agreement. Despite the losses, TMTG reported ending the year with $776.8 million in cash and short-term investments.

The company went public through a special purpose acquisition company (SPAC) last year and currently has a market capitalization of approximately $4.9 billion. The stock experienced a surge in value during 2024, nearly doubling in price, coinciding with the U.S. presidential election. However, the stock has declined nearly 48% this year as of Friday's close.

BNN's Perspective:

While the stock buyback and Bitcoin investment represent a bold move by Trump Media, the company's significant losses and reliance on a volatile market raise concerns. The long-term viability of the company hinges on its ability to generate revenue and navigate the complex regulatory landscape of the cryptocurrency market. The success of its planned crypto products will be crucial to its future performance.

Keywords: Trump Media, stock buyback, Bitcoin, cryptocurrency, financial institutions, Devin Nunes, exchange-traded funds, SPAC, revenue, net loss, market capitalization, institutional investors, convertible notes, Anchorage Digital, Crypto.com

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