Trump Media and Technology Group, which owns Truth Social, says its $400 million stock buyback won’t affect its Bitcoin plans.
Trump Media Moves Ahead with $2.5B Bitcoin Plan
The company confirmed its board has approved buying back up to $400 million in shares, but made it clear this does not change its goal to build a Bitcoin treasury with over $2 billion.
Trump Media lost 3,870% last quarter but now wants to reward investors by buying back shares. The company had $760 million in cash at the end of Q1, but is losing $60 million a year.
It’s odd to spend most of the remaining money on buybacks before fixing the huge losses. At first, Trump Media denied reports it was raising $3 billion to invest in crypto. But it later confirmed a $2.5 billion fund to buy Bitcoin, including a $2.3 billion private offering.
The U.S. SEC, led by Trump nominee Paul Atkins, approved the company’s Bitcoin deal in June. The money for the Bitcoin purchase came from selling 56 million shares and 29 million shares linked to convertible notes.
Trump Media has also applied to launch a spot Bitcoin ETF. Truth Social separately filed to list a combined Bitcoin and Ether ETF. The SEC has already approved Bitcoin ETFs since January 2024 and Ether ETFs since May 2024.
Trump’s Bitcoin Reserve Plan Faces Backlash
In March, Trump signed an order to create a “Strategic Bitcoin Reserve” and a “Digital Asset Stockpile” to hold digital assets taken by the U.S. government. His advisers have also suggested other ways to grow these reserves.
Some U.S. lawmakers in the Senate say Trump is using his position to help crypto companies with these plans.
The Trump Media announcement came on the same day Senator Adam Schiff introduced a bill to ban the president, First Family, and other officials from creating, promoting, or supporting digital assets. Trump Media’s Bitcoin plans could break the law if the bill passes.
