Trump Loses Another $500 Million as Truth Social's Stock Spiral Worsens
Trump Loses Another $500 Million as Truth Social’s Stock Spiral Worsens
SLIP AND SLIDE
Noah Kirsch
Wealth And Power Reporter
Updated Apr. 15, 2024 4:34PM EDT
Published Apr. 15, 2024 4:01PM EDT
https://www.thedailybeast.com/trump-loses-another-dollar500-million-as-truth-socials-stock-spiral-worsens?
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Donald Trump’s inexplicably massive payday keeps getting smaller, as shares in his social media firm plummeted again on Monday. As of mid-afternoon Eastern Time, Trump Media & Technology Group’s stock had crashed another 19 percent; it is now trading at just 40 percent of its peak from late last month. The firm—whose subsidiary, Truth Social, competes with Elon Musk’s platform, X—is still worth more than $3.5 billion on paper. That figure vastly outstrips the value of most companies with TMTG’s financial performance: Last year, it posted revenue of just $4.1 million, with total losses of $58.2 million. Trump owns a majority stake in the business, though he and other executives are not able to liquidate their shares for approximately five more months. Last week, the former president held a party at his resort Mar-a-Lago to celebrate TMTG’s public offering. Some of his acolytes, however, are beginning to grow nervous about their investments. The news represents even more bad news for Trump as he faces the first day of his criminal trial in Manhattan.
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= new reply since forum marked as read
that the business that was supposed save his financial ass was tanking and there was nothing he could do. I doubt he was able to hold back the massive amount of gas being produced in his massive digestive tract. 
Trump Media has filed a registration statement with the SEC to help current holders sell their stock and warrants.
Link to tweet
https://finance.yahoo.com/news/trump-media-plunges-registering-shares-130049015.html
Trump Media & Technology Group Corp., parent of Truth Social, filed to register shares, including those linked to warrants. The move could ultimately bring forward sales from insiders that are currently not permitted until September.
Shares slumped 15% to $27.83 as of 9:50 a.m. in New York, the lowest level since January. Warrants, which are tied to the stock and can be exchanged with cash for shares of the company, sank 6.9% to $12.75. The company has had its market value slashed by more than $5 billion from a peak after debuting in March.
The slump means the paper windfall for the former president has dropped to $2.3 billion from more than $5 billion in a matter of weeks. However, if the stock can hold above the $17.50 mark, Trump and insiders would be in line to get another 40 million shares to divvy up. Even after the latest slide, that so-called earnout would be worth $1.2 billion.
The company registered as many as 146 million common shares, as well as up to 21 million shares that are issuable upon the exercise of warrants. The filing also registered up to 4 million warrants to purchase common stock. All securities being registered are either held by or underlie securities held by existing holders of Trump Media.
The Form S-1 is amazing. See https://www.sec.gov/ix?doc=/Archives/edgar/data/1849635/000114036124019745/ny20026576x1_s1.htm
This filing is going to further dilute the public shareholders in a very thinly traded stock
Link to tweet
The stock has been as low as $26.83 today.
I am looking forward to reading the Form s-1 and 46 pages of risk factors. This will be fun to watch
