Source : The Canadian Press
Former President Donald Trump has secured an additional $1.6 billion in shares in Trump Media, as revealed by a recent regulatory filing. These shares, totalling 36 million, were granted based on the company's stock meeting specific price thresholds. This brings Trump's total ownership in the company, which includes his social media platform Truth Social, to over 114 million shares, valued at approximately $5.2 billion at Wednesday's closing stock price.
However, the current value of these shares is termed as "paper wealth," as Trump is prohibited from selling any shares for six months following Trump Media's public debut unless granted a waiver by the company’s board.
Trump, expected to be the Republican presidential nominee, now holds close to two-thirds of the company's outstanding shares.
Trump Media & Technology Group's shares have experienced a surge in recent weeks, with a closing price of $49.93 on Tuesday. Trump only needed the stock to maintain a price above $17.50 for 20 consecutive trading days to earn the new shares. Nevertheless, the stock took a 9.6% dip on Wednesday, closing at $45.13.
Trump Media gained access to the Nasdaq exchange through a merger with Digital World Acquisition Corp., a special purpose acquisition company (SPAC). Such mergers provide expedited pathways for young companies to go public and have their shares traded.
Following the merger on March 26, the company's stock reached a high of nearly $80 in intraday trading, settling at $57.99 by the close. However, shortly after this impressive debut, Trump Media disclosed a loss of nearly $58.2 million for the previous year, leading to a stock plunge of over 21%. This downturn starkly contrasted with the $50.5 million profit reported in 2022.
In the ensuing weeks, the company's stock price dropped to around $22 before showing signs of recovery in mid-April.
Truth Social, Trump's social media platform, was launched in February 2022, a year after his ban from major platforms like Facebook and Twitter following the January 6 Capitol insurrection. While he has been reinstated on those platforms, Trump has remained loyal to Truth Social.
