Trump’s media company plans $400 million stock buyback

Trump Media and Technology Group, the company behind Truth Social, is set to repurchase up to $400 million of its own shares. This move comes after a tough year, with the stock dropping 46% in value. The company announced the plan on Monday, saying it will boost financial flexibility. The buyback won’t affect its Bitcoin strategy, which involves raising $2.5 billion to build a cryptocurrency reserve.

Trump Media aims to fund the share repurchase separately. After the announcement, the stock rose 2.45% by late morning, though it remains far below its peak from March 2024, when shares hit around $70 after going public. Last year, the company faced challenges, losing $400.9 million while its revenue fell 12% to $3.6 million.

Following his election win in November, President Donald Trump transferred his shares, valued at about $4 billion, to a trust. These shares make up over half of the company’s stock. The repurchase could reduce the number of shares by about 10%, which might help stabilize the stock price. However, Trump Media continues to navigate a rocky market, with investors watching closely to see if these moves can turn things around.