Trump Media approves up to $400 million stock buyback program

NEW YORK - Trump Media and Technology Group Corp. (NASDAQ:DJT), operator of Truth Social platform, announced Monday that its Board of Directors has authorized the repurchase of up to $400 million of the company's common stock. The stock, currently trading at $14,764.8, has seen significant trading activity with a three-month average daily volume of 158.27 million shares. For deeper insights into DJT's valuation metrics and growth potential, InvestingPro offers exclusive analysis and detailed financial metrics.

The company stated that repurchases may include both stocks and warrants through open market transactions, with repurchased shares to be retired. The timing and amount of repurchases will be at the company's discretion, subject to Securities and Exchange Commission regulations. The announcement comes as the stock trades within its 52-week range of $12,470.8 to $17,845.72, having declined approximately 7% year-to-date.

According to a press release statement, Trump Media currently has approximately $3 billion on its balance sheet. CEO and Chairman Devin Nunes described the board's action as a "vote of confidence" in the company and its strategic plans. Want to stay ahead of market movements? InvestingPro subscribers get real-time alerts and comprehensive financial analysis for DJT and thousands of other stocks.

The buyback program will be funded separately from the company's previously announced Bitcoin treasury strategy, which featured a private placement offering of approximately $2.3 billion. The company also noted it may seek to repurchase its outstanding convertible notes in open-market or privately-negotiated transactions.

Trump Media operates the Truth Social platform, Truth+ streaming service, and is launching Truth.Fi, described as a financial services and FinTech brand.

The stock repurchase announcement comes as the company continues to explore additional strategic opportunities, according to the press release. The company retains discretion over terms, prices, and factors applicable to any potential repurchases.

In other recent news, Trump Media and Technology Group Corp. has made significant strides in its financial and strategic ventures. The company has filed an initial registration statement with the SEC for a Truth Social Bitcoin and Ethereum ETF, which plans to allocate 75% of its assets to Bitcoin and 25% to Ethereum. This proposed ETF, contingent upon SEC approval, aims to reflect the price performance of these cryptocurrencies, with shares to be listed on NYSE Arca. Additionally, Trump Media has secured approximately $2.44 billion in funding through a private placement offering, with plans to establish a substantial Bitcoin treasury and support general corporate activities. This positions the company as a prominent Bitcoin holder among U.S. publicly traded companies.

In another development, Trump Media has filed with the SEC to introduce a Bitcoin ETF, with Crypto.com set to manage the custody and execution of Bitcoin holdings. The company's financial strategy is further supported by a $2.3 billion deal through debt and equity subscriptions with around fifty investors. This funding aims to bolster Trump Media's growth strategy, potentially supporting mergers and acquisitions. Meanwhile, analysts from Goldman Sachs have suggested that the Trump administration may explore alternative tariff powers following a court ruling against the use of the International Emergency Economic Powers Act for imposing tariffs. These recent developments highlight Trump Media's dynamic approach in expanding its digital and financial services offerings.

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