Trump Calls Stock Buybacks 'Fake': MicroStrategy Bitcoin Model as Alternative

In a recent statement, former U.S. President Donald Trump described stock buyback programs as 'fake', suggesting that MicroStrategy's Bitcoin-based model offers a more effective alternative for enhancing company valuations.

Details

Trump, who had previously criticized buybacks during his presidency, reiterated his opposition to the practice adopted by many large corporations such as Lockheed Martin (LMT) and RTX (RTX). According to Trump, buybacks serve short-term shareholder interests but do not reflect real company value.

In contrast, Trump pointed to MicroStrategy's approach of issuing new shares to purchase Bitcoin, which has significantly boosted its stock price. The Virginia-based company now holds over 200,000 Bitcoin, making it one of the largest institutional holders of the cryptocurrency.

Context

Trump's remarks come amid volatile U.S. stock markets, where companies continue to use profits for buybacks instead of investing in growth or dividends. According to Federal Reserve data, buyback programs totaled over $1.2 trillion in 2025.

Meanwhile, MicroStrategy has achieved exceptional returns through its bold Bitcoin investment strategy, with its stock surging over 300% in the past year, outperforming broad market indices.

What It Means for Investors

Trump's comments may spark debate over the effectiveness of buyback programs, but immediate policy changes are unlikely. For investors, MicroStrategy's model remains high-risk due to Bitcoin's volatility, while buybacks offer a relatively stable tool for shareholder returns despite criticism.