Trump's Stake in Truth Social Boosts His Net Worth by $1.8 Billion

Significant Increase in Trump's Truth Social Stake

Former president Donald Trump's net worth has seen a substantial increase of approximately $1.8 billion. This comes after regulatory filings revealed that he has significantly increased his stake in Truth Social, bringing his ownership in Trump Media & Technology Group (TMTG) to nearly 65%.

Trump's Additional Shares in TMTG

Trump has acquired an additional 36 million shares of TMTG, which brings his total stake to 114.75 million shares, as per an April 30 filing with the SEC. With the latest share price being nearly $50, Trump's stake in TMTG is estimated to be around $5.7 billion. The additional $1.8 billion was secured through 36 million "earnout shares", which were granted if TMTG achieved certain performance metrics within a specified period, as per an April 15 filing. However, due to a six-month lockup agreement, Trump is unable to sell any shares.

TMTG's Performance in the Stock Market

As reported by the Epoch Times, TMTG shares have experienced quite a roller-coaster ride since the company was listed on Nasdaq last month. This was achieved through a merger with a special purpose acquisition company (SPAC) and the shares were quickly bought up by Trump supporters and speculators.

"Very Solid" Performance

Following the merger and initial public offering (IPO) at the end of March, TMTG, which trades under the ticker symbol DJT, saw a surge in market interest. Its stock price skyrocketed above $79 per share on its first day of trading, pushing the company’s market cap to over $7 billion. However, after the initial surge, TMTG shares fell back to around the $62 mark. They stayed at this level until news broke on April 1 that the company had suffered a $58 million loss in 2023, which sent its stock price plummeting to $22.84 by April 16. Since then, TMTG shares have rallied and are now trading at $49.90 per share. The $58 million loss that triggered the stock price drop on April 1 appears to be largely due to an interest expense of $39.4 million on its outstanding debt, as per the 8-K filing. In 2022, the company reported a net profit of $50.5 million.

Trump and TMTG CEO's Statements on the Company's Performance

On April 4, Trump stated that the media's focus on the $58 million loss was misguided. He praised TMTG's fundamentals, which he claimed include over $200 million in cash and no debt, as “very solid.” TMTG CEO Devin Nunes echoed Trump's sentiments in an April 1 statement, stating that Truth Social has no debt and over $200 million in the bank, which opens up numerous possibilities for expanding and enhancing the platform.

Allegations of Stock Manipulation

Nunes recently requested Congress to investigate allegations that TMTG stock was being manipulated by traders betting on its downfall. In a letter to top House Republicans, Nunes urged lawmakers to open an investigation into "anomalous trading" and possible unlawful manipulation of TMTG stock.

Final Thoughts

The significant increase in Trump's stake in Truth Social has undeniably boosted his net worth. However, the roller-coaster ride of TMTG shares in the stock market, coupled with allegations of stock manipulation, paints a complex picture of the company's financial performance. What are your thoughts on this matter? Feel free to share this article with your friends and let us know your views. Don't forget to sign up for the Daily Briefing, which is everyday at 6pm.