Trump Media hits ‘milestone’ as stock slides

Truth Social’s parent company said it hit a “milestone” Tuesday even as its share price tumbled.

Trump Media & Technology Group announced that additional shares that had been registered earlier this year had been declared effective by the Securities and Exchange Commission, on the same day that shares in the company dropped nearly 10 percent.

The SEC’s decision allows early investors in TMTG, which is majority owned by former President Donald Trump, to exercise public warrants they hold in the company, making just over 14 million shares issuable.

According to the prospectus filed with the SEC, if all warrants are exercised for cash, TMTG could receive up to $247 million in proceeds.

The registration statement “marks another milestone for Truth Social,” said TMTG CEO Devin Nunes. “We’re expecting to be well positioned to energetically pursue TV streaming, other enhancements to the platform, and potential mergers and acquisitions. With approximately 620,000 retail shareholders supporting our vision, the company looks forward to expanding quickly and robustly.”

However, the increase in available shares could dilute the value of existing stock.

TMTG, which trades under the ticker symbol DJT, noted in an SEC filing that if warrant holders sold their shares or there was a “perception that these sales could occur” then there could “a significant decline” in the company’s share price.

TMTG stock closed Tuesday at $31.31 per share, nearly 40 percent lower than the closing price on May 30, the day Trump was found guilty on 34 counts in the Stormy Daniels hush money trial.

It dropped further in after-hours trading to $27.07.

Newsweek has contacted TMGT for comment via email.

Truth Social was launched in February 2022, a year or so after the former president was banned from X, formerly known as Twitter and Facebook for posts concerning the January 6 riots at the U.S. Capitol. Trump chooses to use Truth Social despite having been reinstated to these platforms.

TMTG has “more than $200 million in the bank,” according to a statement shared on Monday with Just The News. The statement also said that the company “feel we’re well positioned at this early stage of our growth.”

In addition to the potential cash warrants, under this prospective $40 million of restricted cash on the company’s balance sheet will become unrestricted. “These funds would supplement the more than $200 million in unrestricted cash the company now retains,” the prospectus noted.

Trump lost an estimated $267,367,500 million this past weekend as a result of the declining share price in TMTG.

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