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Trump Media and Technology Group, active Social Social, announced a new financial strategy on Monday: will spend up to $ 400 million to receive their shares.
When a press release, CEO Devin Nunes, moved, “The movement was” voted for our company, our shareholder and strategic plans. ” The Balance report has a comfortable to take measures to take the measures to take approximately $ 3 billion in cash, nuns and the company “supporting strong shareholder returns.”
However, in the financial world, a massive stock purchase can be interpreted in two ways. Sharpers can be a sign of a healthy, adult company that returns cash. Or, it is possible to reduce the number of shares in the market and thus exaggerating the value of those who remain, as an attempt to take the price of the sagging stock market.
The announcement has lost about 48% of the value of the company, despite some developments in terms of finance, since the beginning of the year. In the first quarter, the Trump Media, a year ago, increased net loss to $ 327.6 million, and total expenses decreased to $ 40.35 million.
President Trump was the largest shareholder in the Trump media, but after his victory in the 2024 presidential election, Donald J. Trump transferred to his trust in December. At that time, he claimed that there were 115 million shareholders worth about $ 4 billion.
The company’s fund is often more likely to move more about the political fortune of the name, often. The truth remains social, its most flagship product, a niche social media platform, and the company must still prove a continuous way to profitability.
This raises a critical question: Is $ 400 million, is the best use of a company to invest in acquisition, users and technology innovation? Or is it simply designed to create a positive news period to reflect the instability of the stock market?
The company’s finances are a serious blend of traditional corporate maneuvers and crypto. The press release is carefully noted that this procurement will be financed from the previously announced Bitcoin Treasury Strategy. Last month, the Crypto Initiative was bolted with $ 2.3 billion in special accommodation with the funds purchased by Bitcoin $ 2.3 billion from institutional investors last month.
This dual approach offers that Trump is trying to complain about two different crowds in the media: Wall Street, for loving and digital gold loving Maga cryptovalas complies with lovers.
The company is difficult to ignore the main truth when wrapping this as a force. A company with a large pile of money, but an unproven work model chooses to spend a wealth of its hype. For investors, the movement can provide a short-term boost. But for critics, it seems less like “voting of trust” and looks like high stakes to try to keep more magical.
