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Trump’s Wealth Surges to $1.8 Billion as Truth Social Boosts Shares

Former President Donald Trump has seen a significant increase in his wealth, with a staggering $1.8 billion added to his net worth. This boost can be attributed to his newly public company, Trump Media & Technology Group, which boasts Truth Social as its flagship social media platform. Trump’s fortune received a substantial uplift as the company granted him an additional 36 million shares as an “earnout” bonus, contingent on the stock maintaining a value above $17.50 per share for any 20 trading days within a 30-trading day period, as detailed in a recent regulatory filing.

Trump's Wealth Surges to $1.8 Billion as Truth Social Boosts Shares
Source: CNBC

Donald Trump is Now $1.8 Billion Richer

With this bonus, Trump now commands control over 114.75 million shares of Trump Media, which trades under the ticker DJT, mirroring his initials. At the current closing price, this places the value of his entire stake at a remarkable $5.7 billion. Bloomberg Billionaires Index estimates Trump’s total net worth to be around $8 billion, with the bulk of his fortune now tied up in DJT shares.

The surge in Trump’s stake value can be attributed to the recent uptick in the stock price of Trump Media. Since its public debut in late March, Truth Social’s parent company has experienced fluctuations, initially peaking at $79.38 per share. However, a subsequent downturn prompted CEO Devin Nunes to accuse certain investors of manipulating the stock through illegal short-selling practices. Nevertheless, a recent resurgence saw the stock climb by 43% since the previous Monday, with shares rising by 7% to $49.93 on Tuesday.

Lockup Period Looms: Delaying Cash-Out Options

Despite Trump’s newfound wealth, he faces limitations on cashing out his fortune due to a lockup period imposed on him and other Trump Media executives. This period prevents insiders from selling their shares for an additional five months, a common practice among newly listed companies to prevent stock devaluation caused by insider selling shortly after going public.

Trump’s Expanded Ownership Stake

The additional stock grant consolidates Trump’s ownership of approximately 65% of Trump Media & Technology Group, a company that reported a deficit and generated just $4.1 million in revenue last year. However, despite its financial challenges, Trump Media boasts a significant base of small investors, many of whom are fervent supporters of the former president. With approximately 600,000 retail investors, as stated by Nunes, the company’s shareholders expressed optimism about Trump’s expanded ownership stake, anticipating potential pressure on short-sellers betting against the stock’s rise.

Trump's Wealth Surges to $1.8 Billion as Truth Social Boosts Shares
Source: The Independent

In response to Trump’s enhanced stake, supporters of Truth Social celebrated the news, viewing it as a strategic move against short-sellers. This sentiment underscores the broader implications of Trump’s financial gains, highlighting the intersection of politics, technology, and investment dynamics in the realm of social media platforms.

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