Former President Donald Trump has fulfilled the necessary conditions to acquire an additional 36 million shares of Trump Media, which are valued at $1.17 billion as of the latest market close on Tuesday.
According to an SEC filing, the merger agreement with Digital World Acquisition Corp. includes an earnout bonus provision that offers the potential for a future windfall if the company meets certain financial goals. As per the provision, if the stock price remains above specific thresholds for 20 out of any 30 trading days, Trump is entitled to receive additional shares.
Donald Trump already had a 60% ownership stake in the company, possessing 78.75 million shares. Although the DJT stock price experienced a decline shortly after its introduction to the stock market, it has managed to remain consistently 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.
As Donald Trump faces trial in Manhattan for 34 counts of falsifying business records, his wealth has seen a significant increase, surging by over a billion dollars.
Trump Media stock price
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The shares of Trump Media & Technology Group Corp remained stable at $32.56, showing a decrease of 8.28% from the previous closing price on April 23rd.
How parent company of Truth Social went public
In 2021, Trump established his own social media company after being banned from other prominent platforms in the aftermath of the January 6 riots at the U.S. Capitol.
Trump Media made its debut on the Nasdaq on March 26, 2024, following its merger with Digital World Acquisition Corp., a special purpose acquisition company (SPAC). The announcement of the merger took place in 2021.
Trump made a grand entrance into the stock market, with Trump Media shares skyrocketing. This was a cause for celebration among his devoted MAGA supporters.
According to regulatory filings, the company operated at a loss in 2023, generating around $4 million in revenue but incurring a loss of over $58 million. In a letter to Trump Media shareholders, accounting firm BF Borgers CPA PC expressed concerns about the company’s ability to continue as a going concern, given the significant operating losses.
According to experts interviewed by USA TODAY, they anticipate that the stock’s price will continue to experience significant fluctuations.
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 Donald Trump’s first out of four criminal trials.
Earlier this year, Trump was ordered to pay a total of $537 million across two civil cases, both of which he is currently appealing.
The Trump Media shares could have provided the necessary funds for those payments at one point.
In April, a reduced bond of $175 million, backed by California billionaire Don Hankey, was posted by him to protect his assets from being seized in a fraud case.
Read More:
- Alina Habba, an attorney for Trump, fumes that the civil fraud hearing “wasted time and money” following the bond agreement
- A new national poll shows that Biden leads Trump among registered voters
