Following a recent merger and public offering on the NASDAQ exchange, Trump Media & Technology Group (TMTG) jumped nearly 25 percent on the stock market. TMTG is also the parent company of Donald Trump’s social media platform, Truth Social.
TMTG, which trades on the stock market as DJT, recently merged with Digital World Acquisition Corp. (DWAC). At the start of last week, shares of DWAC closed at $49.95. By Thursday, TMTG was trading at $61.96, representing a rise of over 24 percent.
Reportedly, former President Trump owns almost 79 million shares in TMTG, where shares are valued around $62. Therefore, his stake in the company is worth nearly $5 billion, while the company’s total market capitalization is over $8 billion. As of March 30, Donald Trump’s net worth was calculated to be $7.48 billion, making him the 350th wealthiest individual in the world.
It was noted in a November filing with the Securities and Exchange Commission (SEC) that TMTG’s performance is heavily correlated with Trump’s activity on Truth Social. If the former president stopped spending considerable time on the platform, the business would be negatively impacted.
“TMTG’s success depends in part on the popularity of its brand and the reputation and popularity of its Chairman, President Donald J. Trump. The value of TMTG’s brand may diminish if the popularity of President Trump were to suffer,” the filing stated.
The filing continued noting that Trump’s activity is the primary driver of the platform’s user base. “Adverse reactions to publicity relating to President Trump, or the loss of his services, could adversely affect TMTG’s revenues, results of operations, and its ability to maintain or generate a consumer base,” it added.
The success of the merger and the stock’s stellar performance is great news for the former president, providing significant additions to his net worth and potential capital at a time when Trump is embattled with legal fees ahead of the upcoming election.
The American Tribune previously reported on the financial benefits that the GOP frontrunner could incur upon the approval of the highly anticipated merger. At the time, Trump was still trying to determine how to source the necessary cash for the nearly 464 million dollar fine he faced in the Letitia James civil fraud case in New York.
Conservative commentator and founder of Turning Point USA, Charlie Kirk, explained the implications of the news, offering insight into some of the details surrounding the merger. “Shareholders have just voted to make Trump Media & Technology Group, the parent company of Truth Social, a publicly traded company. This could net Trump a windfall of $4 billion. The President would need to seek a waiver to liquidate his stock before the end of a lockup period in order to use the cash to secure a $450 million bond in the Letitia James, “Get Trump” fraud case to then appeal the decision. Trump has nearly $500 million in cash, but experts claim he needs $1 billion in cash to secure a bond that size,” Kirk wrote at the time X. “The merger approval means TMTG stock will trade on Nasdaq as “DJT” as early as next week.”
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