In what could be described as a significant windfall, former President Donald Trump has bolstered his stake in Trump Media & Technology Group, with an additional 36 million shares awarded to him. This allotment was triggered by the company’s stock price hitting predetermined market thresholds. As a result, Trump’s portion in the media company swelled, now valued at an eye-watering USD 5.7 billion. The numbers spell a substantial leap in Trump’s business ventures, one that concurrently magnifies his influence in the realms of both media and technology.
Following the latest price per share quoted on Wednesday morning, Trump’s cumulative ownership ascended to more than 114 million shares, positioning him firmly as the majority shareholder, with nearly two-thirds of the company’s outstanding shares under his name. These shares underscore a company on an upward trajectory, as it closed recent trading at USD 49.93 per share. Almost as if hitting a jackpot, the only criterion for Trump’s new shares acquisition was that the stock maintain a minimum threshold of USD 17.50 for 20 consecutive sessions—a benchmark effortlessly surpassed.
The catalyst for this rapid climb of Trump Media shares was its strategic merger with Digital World Acquisition Corp., essentially a special purpose acquisition company (SPAC). Combining forces with a SPAC is seen as a savvy maneuver for young companies that aspire for a more expedited and less convoluted path to going public on stock exchanges.
Following the merger completion on March 26, the first day of trading witnessed the shares skyrocketing to nearly USD 80, albeit settling down to close at USD 57.99. However, the upswings proved to be a rollercoaster as the company’s disclosure of a near USD 58.2 million loss last year produced a sharp 21 percent dip in stock prices. The disclosure was a stark juxtaposition to the USD 50.5 million profit declared for the previous year, leaving investors and market spectators in a brief state of shock.
The stock experienced a period of volatility, dwindling to the lows of about USD 22, before currents changed and mid-April saw a bounce-back, affirming the dynamic and often unpredictable nature of the stock market.
Truth Social, the social media arm of Trump Media & Technology Group launched in February 2022, materialized in the wake of Trump’s ejection from mainstream social platforms such as Facebook and the platform formerly known as Twitter. This ban was instituted following the January 6 insurrection at the U.S. Capitol. Despite the ban being lifted and the option to return to mainstream platforms, Trump has elected to remain with Truth Social.
The former president’s media venture showed resilience in face of the stock adversity; the shares were back on the ascent, marking a 2.7 percent increase to trade at USD 51.30 on a recent Wednesday morning.
Through a tumultuous journey of soaring heights and plummeting lows, Trump’s media enterprise seems to retain its buoyancy, largely reflecting the polarizing figure of its founder. As Trump reclaims his presence on the social media stage and further solidifies his control over the media company, the narrative of his expanding digital empire unravels with a mixture of anticipation and speculation from observers far and wide.
