Former President Donald Trump has significantly bolstered his ownership stake in Trump Media & Technology Group, the parent company of Truth Social, by securing an additional 36 million shares, according to recent Securities and Exchange Commission filings.
This move elevates Trump’s ownership to nearly 65% of the company. The substantial stock bonus, valued at $1.8 billion as of Tuesday, was granted to Trump on Friday after meeting specific performance criteria outlined in the media company’s stock plan, as confirmed by the SEC filing.
As a result of this stock bonus, Trump now commands a commanding 64.9% stake in the company, marking ownership of a total of 114.75 million shares.
This significant increase in ownership coincides with a notable uptick in the company’s share price, which surged by almost 7% on Tuesday, closing at $49.93, despite broader market downturns.
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What we know
The rise in share price has resulted in a staggering 60% surge in the company’s valuation over the past five trading days. However, it’s worth noting that the value of Trump’s newly acquired shares remains subject to fluctuations, as evidenced by the recent volatility in the company’s stock, which plummeted to as low as $22.84 earlier this month before staging a recovery.
Moreover, Trump and other key executives are subject to a lockup period, barring them from selling their shares for an additional five months. This restriction is poised to expire in due time, potentially influencing the dynamics of the company’s stock movement in the future.
What you should know
Meanwhile, CEO of Trump Media and Technology Group, Devin Nunes, a former Republican congressman, has attributed the stock volatility to alleged market manipulation by Wall Street short sellers. He called for intervention from both the Nasdaq and Congress to address these concerns.
Against this backdrop, Trump’s continued involvement in the company comes amidst ongoing legal battles at both state and federal levels. These legal challenges have notably compelled Trump to furnish a substantial sum of $175 million to cover a portion of a $464 million fraud bond, stemming from a lawsuit that found him and his business associates liable for financial misrepresentations.
As Trump’s media venture pushes through amidst legal and regulatory challenges, the trajectory of Truth Social and its parent company remains subject to scrutiny and speculation.