Former President Donald Trump’s Net Worth Gets a Boost
Former President Donald Trump’s net worth has received a significant boost, thanks to his newly public company, Trump Media & Technology Group. The company, whose main asset is the social media platform Truth Social, has awarded Trump an additional 36 million shares as an “earnout” bonus. This bonus is contingent on the stock staying above $17.50 a share for any 20 trading days within a 30-trading day period.
Trump Media & Technology Group’s stock surge
With this bonus, Trump now controls 114.75 million shares of Trump Media, which trades under the ticker DJT - the same as his initials. Based on the current closing price of the company, Trump’s entire stake is valued at $5.7 billion. This brings his total net worth to around $8 billion, according to Bloomberg Billionaires Index.
Donald Trump’s net worth gets a boost
The value of Trump’s stake in DJT has been boosted by a recent surge in the stock’s value. Since going public in late March, Trump Media has experienced a bumpy ride, with the stock initially surging to a peak of $79.38 per share, followed by a weekslong slide. However, the stock has regained some of that lost ground, with shares rising 43% since last Monday.
Truth Social, the social media platform owned by Trump Media & Technology Group
Despite this surge, Trump won’t be able to cash out on his new fortune anytime soon. This is due to a so-called lockup period that restricts him and other Trump Media executives from selling their shares for another five months. Lockups are common with newly listed companies, as they prevent insiders from selling their stakes shortly after a company goes public, which could cause the stock to sink in value.
The lockup period restricts Trump and other executives from selling their shares
Trump now owns about 65% of Trump Media & Technology Group, a company that’s in the red and booked just $4.1 million in revenue last year. However, many of Trump Media’s shareholders are small investors who support the former president. On Truth Social, some of them celebrated Trump’s new ownership stake, predicting that it could put pressure on short-sellers, who are traders that bet a stock will decline in value.
“Prezz and co just played them like a fiddle,” one supporter wrote on Truth, with a screenshot of an alert about the earnout.
Trump supporters celebrate on Truth Social
The future of Trump Media & Technology Group remains uncertain, but one thing is clear - Trump’s net worth has received a significant boost. As the company continues to navigate the ups and downs of the stock market, one thing is for sure - Trump’s stake in DJT will be closely watched by investors and critics alike.
