Topline
Former President Donald Trump recently secured 36 million additional shares of stock from Trump Media & Technology Group, according to Securities and Exchange Commission filings, raising his stake in the Truth Social parent company to nearly 65%.
Trump now owns 114.75 million shares in the media company. (Photo by JUSTIN LANE / POOL / AFP) ... [+]
Key Facts
The bonus, valued at $1.8 billion as of Tuesday, was given to Trump on Friday because performance criteria of the media company’s stock was satisfied, according to an SEC filing.
Trump now owns a 64.9% stake in the company, which closed up nearly 7% on Tuesday at $49.93—bucking broad market sell-offs.
The 64.9% stake equates to a total of 114.75 million shares in the media company, which has experienced a 60% increase in its share price in the last five days of trading.
The value of Trump’s new shares could fluctuate significantly, as the company stock dropped as low as $22.84 this month before recovering.
The former president and other company executives are prohibited from selling their shares for another five months, when a lockup period expires.
Tangent
Trump Media and Technology Group CEO Devin Nunes, who is also a former Republican congressman, has blamed the company’s stock volatility on Wall Street short sellers engaged in “potential market manipulation” and has sought to have the Nasdaq and Congress intervene.
Key Background
Trump’s company has a market cap of $6.8 billion and has proved volatile in the past month, trading as high as $51.60 and as low as $22.84. The company’s public listing and payouts to Trump have come as the former president is engaged in several state and federal legal battles, one of which forced him to put up $175 million to cover part of a $464 million fraud bond. Trump is appealing the fraud case, which found him and his business associates—including his sons—liable for misstating the value of assets on financial documents.
Further Reading
Truth Social Wants Wall Street To Stop Shorting Its Stock. Good Luck. (Forbes)
Trump’s Truth Social Stake Will Grow By $1.2 Billion—Even As Stock Falls 8% (Forbes)
