Former President Donald Trump has fulfilled the necessary criteria to be awarded up to 36 million additional shares of Trump Media. These shares are valued at $1.17 billion as of Tuesday’s closing.
According to an SEC filing, the merger agreement with Digital World Acquisition Corp. includes an earnout bonus provision, which offers the potential for a future windfall if the company meets financial goals. This provision states that Trump will be entitled to additional shares if the stock price remains above certain thresholds for 20 days out of any 30 trading days.
Trump already held a 60% stake in the company, owning 78.75 million shares. Despite experiencing a decline in the DJT stock price shortly after its introduction to the market, it has consistently remained above the $17.50 per share mark over the course of 20 trading days. The lowest point it reached since its debut on March 26 was $22.84 per share on April 16.
While facing trial in Manhattan for 34 counts of falsifying business records, Donald Trump’s wealth has seen a significant increase of over a billion dollars.
Trump Media stock price
This Article Includes
On April 23, the shares of Trump Media & Technology Group Corp remained stable at $32.56, experiencing a decrease of 8.28% compared to the previous close.
How parent company of Truth Social went public
In 2021, Trump established his own social media company after being banned from other prominent platforms due to his involvement in the January 6 riots at the U.S. Capitol.
Trump Media made its debut on the Nasdaq on March 26, 2024, following a merger with Digital World Acquisition Corp., a special purpose acquisition company (SPAC). The announcement of the merger had been made in 2021.
Trump made a grand entrance into the stock market, with the shares of his company, Trump Media, skyrocketing. This success brought joy not only to Trump himself but also to his devoted supporters from the MAGA movement.
According to regulatory filings, Trump Media, despite generating around $4 million in revenue, experienced a significant loss of over $58 million in 2023. An accounting firm, BF Borgers CPA PC, expressed concerns about the company’s financial viability, stating that the operating losses cast doubt on its ability to sustain operations.
According to experts, the stock’s price is expected to continue experiencing volatility, as reported by USA TODAY.
Trump’s legal cases come with mounting price tag
The share prices of Trump Media have experienced a significant decline since its initial public offering, plummeting by over 60% as of April 15, coinciding with the commencement of the first of four criminal trials faced by former President Donald Trump.
Earlier this year, Trump was ordered to pay a total of $537 million in two civil cases, both of which he is currently appealing.
The Trump Media shares were once considered as a possible means of financing those payments.
In April, a reduced bond of $175 million was posted by California billionaire Don Hankey to prevent the seizure of assets in a fraud case.
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