Aditya Raghunath

Wed, Jun 25, 2025, 12:58 PM3 min read

Trump Media and Technology Group (DJT) surged in early trading on Monday, June 23 following the announcement of a $400 million share repurchase authorization, though shares closed roughly flat. The operator of Truth Social, Truth+, and Truth.Fi said the buyback demonstrates board confidence in the company’s strategic direction while leveraging its $3 billion balance sheet.

CEO Devin Nunes emphasized the program supports shareholder returns as management explores additional strategic opportunities. The repurchases, funded separately from Trump Media’s Bitcoin (BTCUSD) treasury strategy, will include stocks and warrants through open market transactions with retired shares.

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Valued at a market cap of $4 billion, DJT stock is down 80% from all-time highs and has pulled back by almost 50% in 2025. Let’s see if you should own DJT stock right now.

Earlier this month, Trump Media announced a massive $2.5 billion capital raise to build one of the largest corporate Bitcoin reserves. The Truth Social operator plans to raise funds through $1.5 billion in common stock and $1 billion in convertible notes, with the proceeds primarily directed toward accumulating Bitcoin as a core treasury asset.

Nunes positioned the strategy as both a value driver and political statement, calling Bitcoin “the apex instrument of financial freedom” and a hedge against “financial discrimination.” The company will partner with Anchorage Digital and Crypto.com for custodial services, signaling institutional-grade security for its cryptocurrency holdings.

However, Trump Media’s fundamental business metrics raise questions about this strategic pivot. For instance, in Q1, it reported revenue of $821,000, while operating expenses exceeded $40 million. Similar to other social media platforms, Truth Social relies heavily on advertising revenue, generating 93% of these sales from a single customer.

Unlike MicroStrategy (MSTR), which had an established enterprise software business before pivoting to Bitcoin, Trump Media lacks profitable operations to support its treasury strategy. Its emerging products Truth+ and Truth.Fi have yet to generate meaningful revenue, while management has acknowledged material weaknesses in financial reporting controls.