June 23 (UPI) — The parent company behind the Truth Social social media platform announced Monday it will buy back millions of dollars’ worth of its own stock.
The Trump Media and Technology Group Corp., or DJT, of which President Donald Trump indirectly owns more than 114 million shares via a revocable trust and is the largest shareholder, stated in a press release that its board of directors has approved the repurchase of up to $400 million of the company’s common stock.
“The board took a vote of confidence in our company, our stock and our strategic plans,” said Trump Media’s CEO and Chairman Devin Nunes. “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.”
DJT is the operator of Truth Social, the streaming platform Truth+ and the FinTech brand Truth.Fi.
The buybacks, comprised of either stocks or warrants, would be achieved through open-market transactions, with repurchased shares to then be retired by the company. According to the release, the “timing and amount of the repurchases would be at Trump Media’s discretion, in compliance with relevant Securities and Exchange Commission rules and regulations.”
The share repurchases would be funded separately from Trump Media’s previously announced Bitcoin treasury strategy, which featured a private placement offering of approximately $2.3 billion and won’t be changed by the buyback.
The announcement also notes that DJT might also consider repurchasing its outstanding convertible notes in either open-market or privately negotiated transactions and will maintain its discretion in regard of any related prices, terms and factors which would apply to such repurchases.
The move follows Trump Media’s $2.5 billion raise last month from institutional investors, which it says would be used to buy bitcoin with custody provided by Anchorage Digital and Crypto.com.
