Trump Media and Technology Group, the company that owns Truth Social Platform, said the $400 million share buyback program would not affect plans to create the Bitcoin Treasury.
In a notice Monday, US President Donald Trump’s media company said the board has approved the repurchase of up to $400 million in common stock. Stock buybacks will not affect the company’s strategy to establish Bitcoin (BTC) Treasury with over $2 billion in funds.
The Media Group initially denied reports that it plans to raise about $3 billion for cryptocurrency investments, but later confirmed $2.5 billion in capital funds to buy Bitcoin. Trump Media’s Bitcoin strategy “featured its offering a total of approximately $2.3 billion private placement,” according to a notification on Monday.
The Securities and Exchange Commission (SEC), chaired by Trump candidate Paul Atkins, approved the media company’s Bitcoin transaction registration statement in June. The filing showed that $2.3 billion in Bitcoin investment was derived from resale of 56 million shares and 29 million shares tied to convertible notes as part of debt and equity agreements.
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Trump Media has also applied for the launch of the Spot Bitcoin Exchange Trading Fund (ETF), which Truth filed separately to list and trade dual ETF stocks related to Bitcoin and Ether (ETH). The SEC has approved the list of Spot Bitcoin ETFs since January 2024, and has approved Spot Ether ETFS since May 2024.
https://www.youtube.com/watch?v=vkc5qcrvdc0
National Bitcoin Stockpiling Plan under Trump
Trump also proposed that the US establish a “strategic Bitcoin Reserve” and a “digital asset stockpile” through an executive order in March. The reserves retain digital assets that have been confiscated by the US government, but Trump’s advisors have suggested other ways to expand their stockpiles.
Members of the U.S. Senate Permanent Subcommittee on the investigation accused them of using their position within the government “to enrich cryptocurrency companies” by establishing stock.
Trump’s media announcement came on the same day California Sen. Adam Schiff introduced a law aimed at banning US presidents, First Family and other civil servants from issuing, sponsoring or approving digital assets. Trump media, under the president’s same name, could violate the law with the proposed Bitcoin strategy if they pass.
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