Former President Donald Trump has recently obtained an additional $1.6 billion worth of shares in Trump Media, as per a regulatory filing. This acquisition stems from the company's stock meeting specific price benchmarks, resulting in Trump being granted an extra 36 million shares in the firm that houses his social media platform, Truth Social. Consequently, his total ownership now exceeds 114 million shares, valued at approximately $5.2 billion based on the closing stock price on Wednesday.
At present, the value of these shares is considered as 'paper wealth,' with Trump being restricted from selling any shares for six months post the public debut of Trump Media unless a waiver is granted by the company's board. As the presumptive Republican presidential nominee, Trump now possesses nearly two-thirds of the company's outstanding shares.
Trump Media & Technology Group's shares have experienced a surge in recent weeks, with Tuesday's closure at $49.93. Trump only needed the stock to surpass $17.50 for 20 consecutive trading days to secure the additional shares. However, the stock witnessed a 9.6% decline on Wednesday, concluding at $45.13.
Trump Media gained its listing on the Nasdaq through a merger with Digital World Acquisition Corp., a special purpose acquisition company (SPAC). Such mergers provide young companies with expedited pathways to publicly trade their shares. Following the merger closure, the combined company's shares reached nearly $80 on the first trading day before settling at $57.99.
Shortly after this notable stock market debut, Trump Media disclosed a loss of nearly $58.2 million in the previous year, leading to a more than 21% drop in its stock value. This loss contrasts sharply with the $50.5 million profit reported for 2022. Subsequently, the company's stock plummeted to around $22 each before a rebound in mid-April.
Truth Social, Trump's social media platform, was launched in February 2022, a year after his ban from major social platforms like Facebook and X (formerly Twitter) following the January 6 Capitol insurrection. While reinstated on these platforms, Trump has opted to remain active on Truth Social.
