Trump Media and Technology Group, the company that owns the Truth Social platform, stated that its $400 million stock buyback plan will not affect its plans to create a Bitcoin (BTC) treasury.
In a notice on Monday, the media company of U.S. President Donald Trump announced that its board has authorized the repurchase of up to $400 million in common stock. The company stated that the stock buyback will not impact its strategy of using over $2 billion in funds to establish a Bitcoin treasury.
The media group initially denied reports about its plans to raise approximately $3 billion to invest in cryptocurrency but later confirmed a $2.5 billion capital financing for the purchase of Bitcoin. According to Monday's notice, Trump Media's Bitcoin strategy "includes a private placement totaling approximately $2.3 billion."
The U.S. Securities and Exchange Commission (SEC), led by Paul Atkins, who was nominated by Trump, approved the media company's Bitcoin trading registration statement in June. The documents show that the $2.3 billion for Bitcoin investment comes from the resale of 56 million shares of stock and 29 million shares of convertible notes related to debt and equity agreements.
Trump Media has also applied to launch a spot Bitcoin exchange-traded fund (ETF), while Truth Social has separately applied to list and trade shares of a dual ETF related to Bitcoin and Ethereum (ETH). The SEC approved the listing of spot Bitcoin ETFs starting January 2024 and spot Ethereum ETFs starting May 2024.
Trump also proposed in a March executive order that the U.S. should establish a "strategic Bitcoin reserve" and "digital asset reserve." These reserves would hold digital assets confiscated by the U.S. government, but Trump's advisors suggested other ways to expand the reserves.
Members of the U.S. Senate Permanent Subcommittee on Investigations accused the president of using his position in government "to profit cryptocurrency companies by establishing reserves."
On the same day that Trump Media's announcement was released, California Senator Adam Schiff introduced legislation aimed at prohibiting the U.S. president, the first family, and other public officials from issuing, sponsoring, or endorsing digital assets. If the law passes, Trump Media's Bitcoin strategy proposed in the name of the president could violate the law.
Related: Metaplanet increases its holdings by 1,111 Bitcoins, nearing Tesla's BTC holdings
免责声明：本文章仅代表作者个人观点，不代表本平台的立场和观点。本文章仅供信息分享，不构成对任何人的任何投资建议。用户与作者之间的任何争议，与本平台无关。如网页中刊载的文章或图片涉及侵权，请提供相关的权利证明和身份证明发送邮件到support@aicoin.com，本平台相关工作人员将会进行核查。
