Donald Trump’s media company continues to struggle as its share price has fallen faster than ever, despite receiving some good news from the SEC earlier this week.
Trump Media & Technology Group, the owner of social networking site Truth Social, ended Friday trading at $26.75 a share, just over half the $49 a share the company was trading at when the month began.
TMTG has fallen since a New York jury found Trump guilty of falsifying business records in a scheme to illegally influence the 2016 election on May 30. Trump faces sentencing on July 11.
The former president’s stock takes a big hit from the fall, as his 114.7 million shares would drop $2.4 billion in value.
It comes a week after the SEC announced the company’s filing to resell certain shares and warrants, potentially giving it about $247 million in proceeds.
Donald Trump’s media company continues to struggle as its share price has fallen faster than ever, despite receiving some good news from the SEC earlier this week.
Trump Media & Technology Group, the owner of social networking site Truth Social, ended Friday trading at $26.75 a share, just over half the $49 a share the company was trading at when the month began
When TMTG made the announcement of the new shares on Tuesday, the share price fell 17 percent before a further 15 percent drop 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 with its warrants now being exercised, it expects to be ‘well positioned’ to pursue telecasting, other platform improvements and potential mergers and acquisitions.
Trump Media said the proceeds from the potential sale of those warrants would supplement the more than $200 million in unrestricted cash it currently holds.
The company added that an additional $40 million of restricted 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 ticker symbol ‘DJT’, has been extremely volatile since its debut in late March, joining the ranks of meme stocks that are prone to ricocheting from highs to lows, while investors with small pockets try to catch a growing momentum. swing at the right time.
Trump’s net worth was $5 billion at the market’s close at 4 p.m. ET, making him the 1,438th richest person in the world, according to Forbes calculations.
Most of Trump’s wealth is derived from his stake in Trump Media.
TMTG has fallen since a New York jury found Trump guilty of falsifying business records in a scheme to illegally influence the 2016 election on May 30. Trump faces sentencing 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 of 34 counts of falsifying business records on May 30.
It was the first time a former US president has faced a criminal trial, and the verdict could upend the race for the White House in 2024, marking a pivotal moment in US history.
The verdict comes after five weeks of dramatic evidence and 22 witnesses being questioned on the stand.
The 34 charges Trump faces each carry a maximum possible sentence of up to four years in prison. A sentencing date is set for July 11 at 10 a.m. ET.
Prosecutors allege a plot by Trump to ‘corrupt’ the 2016 election by hiding a $130,000 payment from his ‘fixer’ Michael Cohen to porn star Stormy Daniels.