Trump's $400M Stock Buyback Is Just the Start--Next Move? A $2.5B Bitcoin Bombshell
Trump Media & Technology Group (NASDAQ:DJT), the company behind Truth Social, is stepping in to defend its stock after a rough year. On Monday, the firm announced a plan to buy back up to $400 million worth of shares, saying the move is aimed at increasing financial flexibility. These shares will be permanently retired. The buyback comes after DJT stock slid 46% year-to-date. Donald Trump remains the largest shareholder with roughly 114 million shares, though all of them were transferred to the Donald J. Trump Revocable Trust after his 2024 election win.
Warning! GuruFocus has detected 4 Warning Signs with DJT.
The company's stock rose 2.45% at 11.43am today, but still trades well below its post-IPO highs in late March. Financial results haven't helped: Trump Media reported a $400.9 million loss last year, and revenue dropped 12% to just $3.6 million. The company confirmed the buyback will be funded separately from its digital asset strategy, which is quickly becoming the bigger story.
That strategy? A $2.5 billion raise from institutional investors to build a Bitcoin reserve. It's a bold pivotchanneling the MicroStrategy playbookand positions Trump Media as the next corporate name diving into crypto. Whether that excites Wall Street or just adds more volatility is still unclear. But between a shrinking float, a massive crypto bet, and one of the world's most polarizing figures behind it, DJT just handed investors a brand-new narrative to trade on.
This article first appeared on GuruFocus.
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