Truth Social’s parent company moves forward with crypto investment plans despite repurchase program
Trump Media and Technology Group (TMTG), the owner of Truth Social, has clarified that its newly announced $400 million stock repurchase plan will not impact its ongoing efforts to establish a Bitcoin treasury worth over $2.3 billion.
In a statement released on Monday, the company said its board had authorized the buyback of up to $400 million in common shares, but emphasized that this initiative would not alter its broader cryptocurrency strategy.
$2.3 Billion Committed to Bitcoin Treasury
TMTG initially denied reports in early 2024 that it was raising $3 billion to acquire cryptocurrency. However, the company later confirmed a $2.5 billion private placement, of which $2.3 billion has now been formally allocated to Bitcoin (BTC) investments, according to the June SEC filing.
The US Securities and Exchange Commission (SEC), under the leadership of Trump-appointed chair Paul Atkins, approved the registration statement for the crypto funding, which includes the resale of 56 million shares and 29 million convertible notes as part of its debt and equity deals.
Bitcoin ETF Ambitions and Truth Social’s Role
In addition to building a Bitcoin treasury, Trump Media has also submitted applications to launch a spot Bitcoin ETF and a dual Bitcoin-Ether ETF through Truth Social. These applications come as the SEC continues approving spot crypto ETFs — beginning with Bitcoin ETFs in January 2024 and Ether ETFs in May 2024.
The filings reflect Trump Media’s efforts to expand its crypto-related initiatives beyond treasury strategy and into retail investment vehicles.
Strategic Bitcoin Stockpile: A National Initiative
President Donald Trump has signaled a broader national commitment to digital assets through an executive order in March, proposing the creation of a Strategic Bitcoin Reserve and Digital Asset Stockpile. These would store cryptocurrencies forfeited to the US government, although Trump advisers have floated ideas to actively grow the reserves via purchases or partnerships.
However, this initiative has sparked concern from lawmakers. Members of the Senate Permanent Subcommittee on Investigations have accused Trump of using his presidential influence to benefit affiliated cryptocurrency ventures — including Trump Media’s Bitcoin investment plan.
Legal Pushback Emerges
Coinciding with the announcement, California Senator Adam Schiff introduced legislation that would prohibit presidents, their families, and other high-ranking officials from sponsoring or endorsing digital assets while in office.
If passed, the bill could potentially make parts of Trump Media’s Bitcoin strategy legally problematic, given its alignment with the current president’s political and financial interests.
Outlook
Despite mounting scrutiny, Trump Media remains committed to its long-term crypto ambitions, signaling growing institutional confidence in Bitcoin as a treasury reserve asset. While legal and political challenges loom, the company’s dual-pronged approach — combining capital markets participation with crypto exposure — marks a significant shift in how media and tech firms may engage with digital assets moving forward.
