By Tomi Kilgore
The $400 million stock-repurchase plan would not change the Truth Social parent’s bitcoin treasury strategy
Shares of Trump Media and Technology Group Corp. rallied Monday, after the parent of President Donald Trump’s social-media platform Truth Social announced a $400 million share repurchase program.
The company said the program, which was authorized by the board of directors, wouldn’t affect its recently announced bitcoin treasury strategy.
The stock (DJT) jumped 2.6% in morning trading, after closing Friday at an 11-week low. Through Friday, it had tumbled 30.7% amid a four-week losing streak.
Trump Media said the repurchases would be made in the open market, and the shares that were bought back would be retired.
At current prices, the $400 million program would represent up to 21.9 million shares, or 9.9% of the shares outstanding used to calculate the company’s first-quarter losses per share. The shares outstanding, as of March 31, had jumped 143% from a year ago, to 220.6 million shares.
Investors aren’t usually happy with big increases in a company’s shares outstanding, because it means the percentage of the company they own declines. So they have reason to cheer when a company chooses to reduce the share count through buybacks.
In April, Trump Media had announced agreements to sell $1.5 billion worth of common stock and $1 billion in debt, which could be converted into stock, in a private placement that closed on May 30.
The company said it planned to use the proceeds from the offering to make it “one of the top bitcoin holders among publicly traded U.S. firms.”
Read: Trump’s social-media company is now a real bitcoin player – and its stock is gaining.
The $400 million share repurchase program would not come from the money raised for bitcoin, the company said, and it would not change its strategy on purchasing bitcoin. As Chief Executive Devin Nunes put it, the repurchase program was a separate confirmation of the strength of the company’s financial outlook.
“The board took a vote of confidence in our company, our stock, and our strategic plans,” Nunes said. “Since Trump Media now has approximately $3 billion on its balance sheet, we have the flexibility to take actions like this which support strong shareholder returns, as we continue exploring further strategic opportunities.”
The DJT stock has dropped 54.3% since Trump was inaugurated, while the S&P 500 index SPX has slipped 0.1%.
-Tomi Kilgore
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06-23-25 1152ET
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