Trump Media (Nasdaq, NYSE, Texas: DJT), the namesake company of President Donald Trump and creator of Truth Social, says its Board of Directors has authorized up to $400 million of the company’s shares.
Trump Media currently has a market cap of $4.96 billion. Shares of the company have a 52-week trading range of $11.75 – $54.68. At market close, shares were priced at $17.89.
In a release, the company said that any shares repurchased would be conducted through open market transactions with the shares being retired.
Typically, a company repurchases shares if it believes they are undervalued. It is also a way to reward current shareholders, as fewer shares trading can help push the price higher generating gains for investors.
The company did not indicate when any shares would be repurchased.
Devin Nunes, Trump Media Chairman and CEO, said the decision was a vote of confidence by the board and their expectations for the future performance of the firm.
“Since Trump Media now has approximately $3 billion on its balance sheet, we have the flexibility to take actions like this which support strong shareholder returns, as we continue exploring further strategic opportunities.”
Trump Media recently announced a Bitcoin Treasury strategy, raising $2.44 billion to purchase BTC.
The company has also expressed its intent to launch a crypto ETF.
The company stated that its Bitcoin Treasury strategy remains in place.