Trump Media and Technology Group (NASDAQ: DJT), the parent company of the Truth Social platform, has unveiled a massive share buyback program worth $400 million. This move is being done despite the company’s struggle to generate significant revenue.
The company announced that its board of directors had authorized the repurchase of up to $400 million of its common stock, which could potentially retire about 12.35 million shares, based on its current market capitalization of $4.94 billion.
However, this announcement raises questions given the company’s financial standing. Trump Media and Technology Group reported a mere $3.6 million in sales for the year ending December 31, 2024. When excluding deferred revenue adjustments, the actual billings were closer to $200,000. Even with these poor revenue figures, the company has launched a strategy to diversify its revenue streams, focusing on the cryptocurrency sector. Recently, it filed a registration with the SEC for a Truth Social Bitcoin and Ethereum ETF, which will hold a 75:25 ratio of the two cryptocurrencies. The company aims to expand its product offerings through Truth.Fi, with a funding pool of around $250 million to back a series of ETFs and SMAs.
In addition to this, Trump Media and Technology Group raised $2.3 billion by issuing 29 million shares of convertible notes and 56 million common shares. This funding will be dedicated to supporting the company’s Bitcoin Treasury, further underscoring its pivot toward cryptocurrency and investment diversification.
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