Trump Media and Technology Group, the company that owns the Truth Social platform, said its $400-million share buyback program will not affect its plans to create a Bitcoin treasury.In a Monday notice, US President Donald Trumps media company said its board of directors had authorized the repurchase of up to $400 million in common stock.
The stock buyback does not impact the companys strategy to establish a Bitcoin (BTC) treasury using more than $2 billion in funds, it said.The media group initially denied reports that it was planning to raise roughly $3 billion to invest in cryptocurrency, but later confirmed a $2.5-billion capital funding to purchase Bitcoin.
According to the Monday notice, Trump Medias Bitcoin strategy featured a private placement offering of approximately $2.3 billion in the aggregate.The US Securities and Exchange Commission (SEC), chaired by Trump nominee Paul Atkins, approved the registration statement for the media companys Bitcoin deal in June.
The filing showed the $2.3 billion for the Bitcoin investment came from the resale of 56 million shares and 29 million shares tied to convertible notes as part of debt and equity agreements.Related: Trump familys company cuts stake in World Liberty Financial by 20% ReportTrump Media has also applied to launch a spot Bitcoin exchange-traded fund (ETF), which Truth Social separately filed to list and trade shares of a dual ETF tied to Bitcoin and Ether (ETH).
The SEC has been approving listings of spot Bitcoin ETFs since January 2024 and spot Ether ETFs since May 2024.Trump has also proposed, through a March executive order, that the US establish a Strategic Bitcoin Reserve and a Digital Asset Stockpile.
The reserves would hold digital assets forfeited to the US government, but Trump advisers have suggested other ways of expanding the stockpile.
Lawmakers on the US Senate Permanent Subcommittee on Investigations accused the president of using his position within the government to enrich cryptocurrency firms by establishing the stockpiles.
The Trump Media announcement came the same day that California Senator Adam Schiff introduced legislation aimed at barring the US president, First Family, and other public officials from issuing, sponsoring or endorsing digital assets.
Trump Media, under the presidents namesake, could be in violation of the law with its proposed Bitcoin strategy if it were to pass.Magazine: Trumps crypto ventures raise conflict of interest, insider trading questions