Trump Media and Technology Group, the parent company of the Truth Social platform, announced plans to repurchase up to $400 million of its own stock. The company intends to retire the purchased shares, which cannot be reissued, with the aim of increasing financial flexibility and potentially boosting stock value. This move comes after a significant decline in the company’s stock price, which has dropped 46% in 2024.
Stock Buyback Amid Losses Highlights Struggles and Strategic Shift at Trump Media
Stock buybacks often serve to improve investor confidence and can lead to higher stock prices by reducing the number of outstanding shares. While Trump Media’s stock saw a modest 2% increase following the announcement, it has largely been on a downward trajectory since peaking shortly after its public debut in March. Trump remains the largest shareholder, owning approximately 114 million shares.
Trump Media Announces $400M Stock Buyback as Losses Mount and Bitcoin Strategy ExpandsDespite its bold financial strategies, Trump Media reported a substantial loss of $400.9 million for the year 2024. The company’s revenue also fell by 12%, bringing total annual revenue down to $3.6 million. These figures highlight ongoing challenges for the company as it attempts to stabilize its financial standing and pivot toward more aggressive market maneuvers like stock buybacks.
Trump Transfers Shares to Trust, Launches Bitcoin Strategy to Attract Institutional Investment
In a notable move following his 2024 presidential election win, Donald Trump transferred all of his Trump Media shares—valued at about $4 billion on paper—to the Donald J. Trump Revocable Trust. These shares represented more than half of the company’s total stock. This transfer may be part of an effort to manage conflicts of interest or consolidate his assets under controlled entities.
Trump Media also clarified that the stock buyback will be funded independently from its new Bitcoin treasury strategy. Under this plan, institutional investors will infuse $2.5 billion into the company to support a significant cryptocurrency reserve. This approach aligns Trump Media with other firms like MicroStrategy, which are integrating Bitcoin into their financial reserves as part of broader tech and investment strategies.
