|
NEW
YORK (AP) — President Donald Trump’s media company plans to buy
back up to $400 million of its stock, which have lost 46% of
their value this year.
Trump Media and Technology Group, which operates the Truth
Social media platform, said Monday that the acquisition will
improve its financial flexibility. It will retire the shares
after they are purchased, meaning these particular shares can't
be reissued.
Companies can drive their stock higher by acquiring or removing
the number of company shares outstanding. Trump is the largest
stakeholder in Trump Media, with about 114 million shares.
Shares of Trump Media rose just over 2% Monday. But the shares
appeared to peak about a month after the company went public in
late March. Shares have been on a steady, downward trajectory
since.
The company said early this year that it lost $400.9 million in
2024 and its annual revenue declined 12% to $3.6 million.
After winning the U.S. presidential election in November, Trump
transferred all of his shares in the company — worth around $4
billion on paper — as a gift to the Donald J. Trump Revocable
Trust. Trump’s shares amounted to more than half of the
company’s stock.
The company said Monday that it will fund the buyback separately
from its Bitcoin treasury strategy. Under that plan,
institutional investors will buy $2.5 billion in the company’s
stock with the proceeds going to build up a bitcoin reserve.
Trump Media joins other companies with similar cryptocurrency
strategies, including cloud and mobile software developer
MicroStrategy, which is building a reserve containing billions
worth of bitcoin.
All contents © copyright 2025 Associated Press. All rights reserved
|
|
