Former President Donald Trump has acquired an additional $1.6 billion worth of shares in Trump Media, as stated in a recent regulatory filing. This increase in shares is due to the company’s stock reaching certain price benchmarks, resulting in Trump receiving an extra 36 million shares in the company that houses his social media platform, Truth Social. With this latest acquisition, Trump now holds over 114 million shares, valued at approximately $5.2 billion based on the closing stock price on Wednesday.
Although the value of these shares is currently considered “paper wealth,” Trump is restricted from selling any shares for six months following Trump Media’s public debut unless granted permission by the company’s board. As the presumed Republican presidential nominee, Trump currently owns nearly two-thirds of the company’s outstanding shares.
Trump Media & Technology Group shares have experienced a surge in recent weeks, closing at $49.93 on Tuesday. Trump only needed the stock to remain above $17.50 for 20 consecutive trading days in order to secure the additional shares. However, the stock dropped by 9.6% on Wednesday, ending the day at $45.13.
Following a merger with Digital World Acquisition Corp., Trump Media gained a listing on the Nasdaq, thanks to the aid of a special purpose acquisition company (SPAC). This type of merger facilitates a quicker and easier path for young companies to go public.
Following the merger, Trump Media’s stock rose to nearly $80 per share before settling at $57.99. However, the company later disclosed a loss of nearly $58.2 million for the previous year, resulting in a more than 21% drop in their stock value. The company’s 2023 losses were a sharp contrast to the $50.5 million profit reported for 2022.
Despite these setbacks, Truth Social was launched in February 2022, a year after Trump was banned from major social platforms. Following the Capitol insurrection on January 6, Trump was reinstated to Facebook and Twitter but opted to utilize Truth Social instead.
