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Trump’s Truth Social Holdings Down To $2 Billion As DJT Stock Crashes Again

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Updated Apr 15, 2024, 04:03pm EDT

Topline

The stock linked to former President Donald Trump’s social media company crashed again Monday, burning another hole in Trump’s net worth on paper.

Key Facts

Shares of Trump Media sank more than 18%, building on last week’s 20% loss for the entity linked to Trump’s conservative social media platform Truth Social majority owned by Trump.

Trump Media’s $27 share price Monday is a whopping 65% below its $79 peak on March 26, the first day it was publicly traded under its $DJT ticker following the completion of its merger with its blank-check partner firm.

The Monday selloff came after Trump Media filed to issue as many as 146 million new common shares in the company and another 21 million in warrants (the rights to purchase shares at a certain price), and it would severely dilute existing shareholders’ stakes considering the company currently has only 137 million shares outstanding, about 79 million of which belong to Trump.

Though it’s a routine move for a company who went public via reverse merger like Trump Media, and does not guarantee Trump Media will in fact follow through with an offering of that size, the filing opens the door for Trump and other insiders to more easily cash out on their shares, Bloomberg noted.

Trump’s 58% equity stake in Trump Media could be reduced to below 30% depending on the size of any potential stock offerings.

Big Number

$2.17 billion. That’s how much Trump’s stake in the Truth Social parent was worth Monday, accounting for a majority of his $4 billion net worth. His social media nest egg was worth as much as $6.25 billion last month, falling almost $500 million Monday alone.

Tangent

The nine-figure drop in Trump’s fortune coincided with his arrival at a Manhattan courthouse for the start of his criminal trial related to fraud charges tied to his alleged “hush money” payments to former adult film actress Stormy Daniels two decades ago.

Key Background

The direct listing of Trump Media also overlapped with the GOP’s presumptive 2024 presidential nominee’s escalating legal headaches and fees, and Trump posted a $175 million bond for a civil fraud case earlier this month. Trump Media’s market value, which peaked at over $10 billion in March, is now below $4 billion. Its crash reflects growing commentary about the true value of its core Truth Social business and its poor fundamentals for a company of its valuation, exemplified by its roughly $750,000 in total revenue during 2023’s final quarter, a tiny fraction of what other social media companies reported during the same period.

Further Reading

ForbesTrump Arrives In Court For First Day Of Criminal 'Hush Money' Trial

ForbesTrump's Stock Officially Down 50% Since First-Day Peak -Trump's Stake Down Over $3 Billion

ForbesHow Much Is Truth Social Really Worth?

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