Shares of Truth Social parent company have fallen 60% since March market debut as ex-president under financial pressure:
Shares of Trump Media & Technology Group, the social media company associated with former President Donald Trump, fell by 12% on Monday, continuing a series of losses. This decline followed a regulatory filing indicating the potential sale of 146.1 million additional shares in the coming months. Of these, 114.8 million shares are owned by Trump himself. The filing also mentioned an additional 21.5 million shares that could be sold upon the exercise of certain warrants issued during the company’s initial public offering via a blank-check merger with Digital World Acquisition Corp.
Since its market debut on March 26, the parent company of Truth Social has seen its shares plummet 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, which means his wealth remains closely tied to the company’s market value. If the price remains stable, Trump stands to gain billions of dollars from his shares.
Meanwhile, as the stock dipped, Trump began facing a criminal trial on Monday in a Manhattan court. He is accused of 34 felony counts related to falsifying business records concerning hush-money payments to adult film star Stormy Daniels. This trial marks the first criminal trial of a former American president, with proceedings expected to last about six weeks.
Trump faces significant financial pressure due to multiple legal challenges over the past year, including owing approximately $500 million following civil fraud, defamation, and sexual abuse cases. Trump Media, which has received backing from some of his key political donors, serves as a potential source of income to help pay off these debts.
Earlier this month, several Democratic-aligned groups urged Congress to investigate Trump Media amid concerns about the company’s questionable associations. In early April, two Florida brothers pleaded guilty to insider trading linked to the ex-president’s social media venture. Additionally, the Guardian reported that the company had been sustained by loans from a Russian-American businessman under federal investigation for money laundering and insider trading.
Credits: theguardian.com