Trump Media’s $2.3B Bitcoin Treasury Strategy Shocks Wall Street
The post Trump Media’s $2.3B Bitcoin Treasury Strategy Shocks Wall Street appeared first on Coinpedia Fintech News
As the Iran-Israel conflict shakes global markets, Trump Media is pushing forward with bold crypto moves. Founded by U.S. President Donald Trump, the company has just approved a $400 million stock buyback while reaffirming its strong commitment to digital assets. Meanwhile, Trump’s announcement of a ceasefire led to a 3.2% gain in Bitcoin’s value over 24 hours, with the cryptocurrency holding firm above the $100,000 mark despite the recent bloodbath.
Stock Buyback Shows Confidence
Trump Media has approved a $400 million stock buyback plan to return value to shareholders while signaling strong confidence in its long-term strategy. CEO Devin Nunes highlighted that with $3 billion on the company’s balance sheet, there’s enough flexibility to fund the buyback without affecting its $2.3 billion Bitcoin treasury initiative.
Nunes called Bitcoin “a crown jewel” and said the repurchase is also meant to protect the company from what he described as discrimination against conservative businesses by financial institutions. The funds are part of a broader push to support Trump-branded crypto products, including upcoming ETFs, pending regulatory approval.
Bitcoin Treasury Strategy Still on Track
While the buyback grabbed headlines, the real game-changer is Trump Media’s ongoing plan to build a $2.3 billion Bitcoin treasury. The strategy, similar to what Michael Saylor’s MicroStrategy has done, signals the company’s intent to become a major crypto holder. The plan includes a private placement offering to fund the crypto reserves.
In short, Trump Media is going all-in on crypto with fresh capital and bold plans. It filed to register nearly 85 million shares for resale and secured $2.3 billion through deals with about 50 investors, including $100 million from Chicago-based firm DRW. Additionally, the company has taken things a step further by filing for a combined Bitcoin-Ether ETF in partnership with Crypto.com. The fund is expected to hold 75% in Bitcoin and 25% in Ethereum, aiming to capitalize on both leading cryptocurrencies.
This funding supports its Bitcoin treasury strategy, though the company hasn’t revealed how much BTC it holds yet. Meanwhile, its stock (DJT) rose over 3% on Monday, hitting $18.39 after weeks of sharp declines.
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