Trump Gets Devastating Financial News
Let’s hope MAGA and Trump can overcome this.
The stock of the social media company associated with former President Donald Trump witnessed a significant decline of 12% on Monday, marking yet another downturn in its performance. This drop followed the disclosure in a regulatory filing indicating the potential sale of millions of additional shares in the coming months.
According to the filing, Trump Media & Technology Group is considering the sale of 146.1 million shares, with 114.8 million of those belonging to Trump himself. Additionally, the documents revealed an extra 21.5 million shares that could be sold upon the exercise of specific warrants issued during the company’s initial public offering through a blank-check merger with Digital World Acquisition Corp.
Since its market debut on March 26th, shares of the parent company of Truth Social have experienced a steep decline, plummeting by 60% from the opening price of $70.90. Trump is currently bound by a lockup agreement, preventing him from personally selling his shares until September, thus further linking his financial fortunes to the company’s stock performance. If the current price trajectory holds, Trump stands to potentially profit billions of dollars from his shares.
Meanwhile, as the stock dipped, Trump faced the commencement of his criminal trial in a Manhattan court on Monday. The trial revolves around 34 felony charges related to faking business records about hush-money payments to adult star Stormy Daniels. Notably, this trial marks the first instance of a criminal trial involving a former American president, with proceedings anticipated to last approximately six weeks.
Trump finds himself under considerable financial strain due to a series of legal challenges over the past year, culminating in debts totaling approximately $500 million resulting from civil fraud, defamation, and sexual abuse cases. Trump Media, which garnered support from some of his prominent political backers, emerges as a potential lifeline and income source to address these financial obligations.
Recent developments have drawn scrutiny to Trump Media, with Democratic-aligned groups urging Congress to launch an investigation amid reports of questionable associations. In early April, two brothers from Florida pleaded guilty to insider trading linked to the social media company. Additionally, reports surfaced suggesting the company relied on loans from a Russian-American businessman, currently under federal investigation for money laundering and insider trading, to remain financially afloat.
