NEW YORK – President Donald Trump’s media company has announced a strategy to repurchase up to $400 million of its shares, which have seen a 46% drop in value this year. The firm, Trump Media and Technology Group, which manages the Truth Social media platform, stated on Monday that this acquisition will offer greater financial versatility. Once acquired, the shares will be retired, meaning they won’t be available for future issuance.
By repurchasing shares or reducing the number of shares on the market, companies can potentially increase stock prices. Trump holds the largest stake in Trump Media, owning approximately 114 million shares. In response to the announcement, Trump Media’s stock saw a slight increase of just over 2% on Monday. However, the peak occurred about a month following the company’s public debut in March, and since then, the shares have been frequently declining.
Earlier this year, the company reported a loss of $400.9 million in 2024 and experienced a 12% decrease in annual revenue, bringing the total to $3.6 million. Following his victory in the U.S. presidential election in November, Trump donated all his company shares—valued at an estimated $4 billion— to the Donald J. Trump Revocable Trust. The number of shares Trump owned represented more than half of the company’s entire stock.
On Monday, Trump Media clarified that the buyback will be independently financed from its ongoing Bitcoin treasury initiative. According to the plan, institutional investors will purchase $2.5 billion of the company’s stock, with the funds being used to develop a bitcoin reserve. Trump Media is joining the ranks of several companies engaging in cryptocurrency initiatives, such as MicroStrategy, which is building a substantial bitcoin reserve.