Shares of Trump Media & Technology, the social media company founded by former President Donald J. Trump, took a significant hit on Monday as it fell by 18 percent. This drop in share prices was a result of the company filing for the potential sale of tens of millions of additional shares, causing a plunge in its market value.
The filing for the sale of additional shares also led to a dent in Mr. Trump’s majority stake in the company, which is valued at more than $3 billion. Since its surge in the first days of trading under the name Trump Media, the company’s shares have dropped by more than 50 percent.
Trump Media recently merged with Digital World Acquisition Corp., a SPAC (Special Purpose Acquisition Company), and was expected to register the potential sale of new shares. The company registered more than 146 million shares of stock that could be sold, along with 21 million shares converted after the exercise of warrants.
It is a common practice for companies that merge with SPACs to sell additional securities held by early investors. The news of the potential sale of additional shares caused a stir in the market, leading to the significant drop in Trump Media’s stock prices.
Investors are closely watching the developments at Trump Media & Technology as they assess the impact of the potential sale of shares on the company’s future performance. Stay tuned to World News Live for more updates on this evolving story.
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