Trump Media’s Shares Plummet Over 15% Amid Plans to Issue Additional Stock
In a dramatic turn of events, Trump Media saw its shares fall over 15% after announcing plans to issue millions of additional shares of stock. The drop comes as former President Donald Trump faces the start of his criminal trial in a Manhattan courtroom.
Since going public, Trump Media’s share price has tumbled more than 62%, resulting in a market capitalization reduction of nearly $6 billion. The company has revealed its intentions to offer over 21.4 million shares of common stock through warrants, as well as the resale of up to 146.1 million shares from selling securityholders, with Trump himself holding 114.8 million shares. Trump’s stake in the company is currently valued at over $2.2 billion.
Despite Trump’s efforts to promote the Truth Social app, there has been no data released on active users. However, the company did report a net loss of $58.2 million. Analysts have expressed concerns that the stock valuation does not align with the company’s financial reality.
On the other hand, if the stock price remains high enough, Trump and other insiders could potentially receive a windfall exceeding $1 billion. This news has led to speculation about the future of Trump Media and the impact of the ongoing legal proceedings on the company’s stock performance. Stay tuned to Matzav Blog for more updates on this developing story.
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