Apr 30, 2024,07:22pm EDT
Former President Donald Trump Bolsters Ownership in Trump Media & Technology Group, Now Holds Nearly 65% Stake in Truth Social Parent Company
Former President Donald Trump has recently augmented his ownership in Trump Media & Technology Group by securing an additional 36 million shares, according to Securities and Exchange Commission filings. This move has elevated his stake in the parent company of Truth Social to nearly 65%.
Here are the key details:
- The bonus, valued at $1.8 billion as of Tuesday, was granted to Trump on Friday after the media company’s stock met certain performance criteria, as per an SEC filing.
- Trump’s ownership now stands at 64.9% of the company, which saw its stock rise nearly 7% on Tuesday to close at $49.93, defying broader market downturns.
- This 64.9% stake translates to a total of 114.75 million shares in the media company, which has witnessed a remarkable 60% surge in its share price over the last five trading days.
- However, the value of Trump’s new shares may experience significant fluctuations, considering the stock dropped to as low as $22.84 earlier this month before rebounding.
- Both Trump and other company executives are subject to a lockup period preventing them from selling their shares for another five months. In a tangent:
Trump Media and Technology Group CEO Devin Nunes, a former Republican congressman, has attributed the company’s stock volatility to Wall Street short sellers, accusing them of potential market manipulation. He has urged Nasdaq and Congress to intervene.
Regarding the background:
- Trump’s company currently boasts a market capitalization of $6.8 billion, exhibiting volatility in the past month with trading ranging from as high as $51.60 to as low as $22.84.
- The company’s public listing and payouts to Trump coincide with his involvement in various state and federal legal battles. One such legal dispute compelled him to provide $175 million for part of a $464 million fraud bond. Trump is appealing the outcome of the fraud case, which found him and his associates, including his sons, liable for misstating asset values on financial documents.