Trump Media & Technology Group (TMTG), the parent company of Truth Social, Truth+, and Truth.Fi, has approved a share buyback program worth up to $400 million. The company announced the decision on Monday, stating that the repurchased shares and warrants will be retired permanently.
Following the news, TMTG shares listed under the ticker symbol DJT on Nasdaq and NYSE Texas, rose around 3% in premarket trading. The firm said the buyback may be done through open market purchases.
TMTG is based in Florida and led by CEO Devin Nunes, who said the move shows confidence in the company’s future.
“With approximately $3 billion now on our balance sheet, Trump Media has the flexibility to take bold steps to create shareholder value while exploring additional strategic opportunities,” Nunes said in a press statement.
The buyback announcement came shortly after the company raised $2.5 billion from institutional investors. According to the firm, this included $1.5 billion in equity and $1 billion in convertible notes.
A large portion of the new funds will be used to acquire bitcoin, which the company called its “crown jewel.” Anchorage Digital and Crypto.com will handle custody of the digital assets. TMTG said this move is aimed at protecting the firm from what it called financial discrimination against conservative businesses.
The company also revealed plans to launch Trump-branded exchange-traded funds (ETFs) linked to digital currencies. It has filed documents with the U.S. Securities and Exchange Commission (SEC) for a new Truth Social Bitcoin and Ethereum ETF.
According to the filing, the ETF would hold 75% of its assets in Bitcoin and 25% in Ethereum. If approved, shares of the ETF will be listed on NYSE Arca.
Despite recent developments, TMTG reported a full-year net loss of $400.9 million, with total revenue of only $3.6 million. The company has not yet confirmed a launch date for its crypto-related products.
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