Trump Media & Technology Group, parent company of Truth Social, said Monday its board of directors approved a stock repurchase program of up to $400 million, signaling confidence in the company's long-term value despite ongoing financial losses.
Shares of the company, which trades under the ticker DJT on Nasdaq and NYSE Texas, rose as much as 6% in premarket trading before settling up about 2%. The company confirmed the buyback could include both common stock and warrants through open market transactions, with repurchased shares to be permanently retired.
"The Board took a vote of confidence in our Company, our stock, and our strategic plans," said CEO and Chairman Devin Nunes in a statement. "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."
Trump Media said the repurchase will be funded separately from its recently announced $2.5 billion Bitcoin treasury strategy. That initiative included $1.5 billion in equity and $1 billion in convertible notes and marked one of the largest corporate crypto reserve plays to date. The funds will be used to acquire bitcoin, launch Trump-branded ETFs, and create other crypto-linked financial products, pending regulatory approvals.
Calling bitcoin a "crown jewel," Nunes said the initiative is designed to defend the company against "discrimination by financial institutions" targeting conservative businesses. Anchorage Digital and Crypto.com are providing custody services for the bitcoin holdings.
The Florida-based media firm went public via SPAC merger last year and now holds a market capitalization of approximately $4.9 billion. Despite a steep decline of nearly 48% in 2024, the stock doubled in value following Donald Trump's November election victory. Trump, who remains the company's largest shareholder, controls more than 114 million shares through a revocable trust.
The company reported a net loss of $400.9 million for the full year on $3.6 million in revenue, citing high legal fees and changes to advertising revenue-sharing agreements. As of year-end, it held $776.8 million in cash and short-term investments.
