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Trump Stands to Earn Potential Windfall of Over $1 Billion on Trump Media Stock
Former President Donald Trump may see a significant increase in his paper wealth exceeding $1 billion on Tuesday. The increase is attributed to an arrangement where he stands to receive 36 million earnout shares of Trump Media & Technology Group under specific conditions.
Details of the Agreement
According to a recent Securities and Exchange Commission filing, Trump could earn the substantial number of shares if the company’s dollar volume-weighted average price (DVWAP) reaches at least $12.50 for a minimum of 20 trading days within a 30-day period. This agreement came into effect when Trump Media, the entity responsible for the former president’s social media platform Truth Social, went public following its merger with Digital World Acquisition Corp., a special purpose acquisition company (SPAC). The company began trading on the Nasdaq under the DJT ticker on March 26.
Current Market Situation
The 20th trading day falls on Tuesday, and given that the stock price has remained above $12.50, Trump could realize a significant windfall with the potential value of the earnout shares estimated to be nearly $1.3 billion. As of Monday, the closing price of Trump Media stock stood at $35.50 per share. Trump’s ownership share equated to 78.75 million shares, representing approximately 57.6% of the total shares outstanding at the company’s public debut.
Trump Media closed the first day of the week with a market capitalization of $4.85 billion. The stock showed a 0.14% increase in pre-market trading on Tuesday, reaching $35.55 per share. While the stock had an initial peak of $79.38 per share during its first trading week, resulting in a market cap exceeding $8 billion, subsequent weeks saw a decline in share value following the disclosure of significant operational losses in 2023, along with the announcement of a live TV streaming platform and the resale of a large portion of outstanding securities.
However, Trump Media stock exhibited a recovery towards the end of last week, bringing the company’s market value back up by over $1 billion.
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