Donald Trump’s media company continues to face problems as its stock price has fallen faster than ever, despite getting good news from the SEC earlier this week.
Trump Media & Technology Group, owner of the social networking site Truth Social, closed Friday’s trading at $26.75 per share, just over half the $49 per share the company was trading at at the start of the month.
TMTG has fallen since a New York jury found Trump guilty of falsifying corporate records in a scheme to illegally influence the 2016 election on May 30. Trump will be sentenced on July 11.
The former president’s own shares would take a huge hit from the decline, as his 114.7 million share would drop $2.4 billion in value.
It comes in a week in which the SEC declared effective the company’s application for the resale of certain shares and warrants, potentially netting the company approximately $247 million in proceeds.
Donald Trump’s media company continues to face problems as its stock price has fallen faster than ever, despite getting good news from the SEC earlier this week
Trump Media & Technology Group, owner of the social networking site Truth Social, closed Friday’s trading at $26.75 per share, just over half the $49 per share the company was trading at at the start of the month.
When TMTG announced the new shares on Tuesday, the share price fell 17 percent, followed by another 15 percent on Friday.
The company reported only about $770,000 in revenue in the first quarter of 2024, with a net loss of $324.6 million.
The company said that now that the warrants are exercisable, it expects to be “well positioned” to pursue TV streaming, other improvements to the platform and potential mergers and acquisitions.
Trump Media said proceeds from the potential sale of these warrants would supplement more than $200 million in unrestricted cash it currently holds.
The company added that an additional $40 million of escrow cash on its balance sheet will become unrestricted as a result of the effective date of the registration statement on Form S-1.
The stock, which trades under the ticket symbol “DJT,” has been extremely volatile since its debut in late March, joining the ranks of meme stocks prone to bouncing from highs to lows as deep-pocketed investors try to build upside momentum. to take. waving at the right time.
Trump’s net worth was $5 billion as of the market’s close at 4:00 PM ET, making him the 1,438th richest person in the world, according to Forbes calculations.
Most of Trump’s fortune comes from his stake in Trump Media.
TMTG has slumped since a New York jury found Trump guilty of falsifying corporate records in a scheme to illegally influence the 2016 election on May 30. Trump will be sentenced on July 11
A jury of seven men and five women in Manhattan Criminal Court deliberated for nearly 10 hours before convicting the former president on May 30 of 34 counts of falsifying corporate records.
It was the first time a former US president had faced a criminal trial, and the verdict could upset the 2024 White House race, which would prove a pivotal moment in US history.
The verdict comes after five weeks of dramatic evidence and 22 witnesses questioned on the stand.
The 34 charges Trump faces each carry a maximum prison sentence of up to four years. The sentencing date is set for July 11 at 10 a.m. ET.
Prosecutors told of a plot by Trump to “corrupt” the 2016 election by concealing a $130,000 hush money payment by his “fixer” Michael Cohen to porn star Stormy Daniels.