Shares of the parent company of Truth Social have dropped by 60% since its market debut in March, amid financial pressures on the former president
Shares of Donald Trump’s social media company fell 12% on Monday, continuing their downward trend. This followed a regulatory filing indicating the potential sale of millions of additional shares in the coming months. The filing revealed a possible sale of 146.1 million shares in Trump Media & Technology Group, including 114.8 million shares owned by Trump. Additionally, there were 21.5 million shares listed that could be sold upon the exercise of certain warrants issued during the company’s initial public offering via a blank-check merger with Digital World Acquisition Corp.
Since its market debut on March 26, shares of the Truth Social parent company have sharply declined, dropping 60% from the opening price of $70.90. Trump is bound by a lockup agreement that prohibits him from personally selling his shares until September, linking his wealth closely to the company’s market value. If the price remains stable, he could potentially earn billions of dollars from his shares.
Meanwhile, Trump, the presumed Republican nominee for the 2024 election, commenced his criminal trial on Monday in a Manhattan court as the stock price dipped. He faces 34 felony counts of falsifying business records in connection to hush-money payments made to the adult film star Stormy Daniels. This trial marks the first criminal trial of a former American president, and the proceedings are expected to last approximately six weeks.
Trump faces considerable financial strain following a string of legal challenges over the past year. He is indebted to the tune of approximately $500 million due to judgments against him in civil cases involving fraud, defamation, and sexual abuse. Trump Media, supported by some of his key political contributors, presents a potential lifeline and income source to settle these debts.
Earlier this month, a number of Democratic-aligned organizations urged Congress to investigate Trump Media following a series of reports about questionable associates of the company. In early April, two brothers from Florida pleaded guilty to insider trading linked to the former president’s social media firm. Additionally, according to The Guardian, the company has been sustained by loans from a Russian-American businessman who is currently under federal scrutiny for money laundering and insider trading.
