Donald Trump set to earn $1 billion from Truth Social despite fluctuating market trends

Donald Trump set to earn  billion from Truth Social despite fluctuating market trends

Few stocks have been as volatile as Trump Media & Technology Group in recent weeks, but if stocks can avoid a massive fall Over the next two trading days, Donald Trump’s personal fortune is expected to take another leap forward.

Trump is set to receive an additional 36 million shares of the company on the condition that shares remain above $17.50 through the end of trading Tuesday. (As of mid-morning Monday, they stood at just under $36.)

According to the company SEC Filings, the company may issue additional shares to those who had an interest in Trump Media before the merger, including Trump himself, if the average price per share remains above $12.50 for at least 20 of the first 30 days of negotiation. Tuesday will mark the company’s 20th trading day and it has remained well above that figure, even with extreme highs and lows.

If the price stays above $17.50, which has been easy to do, it would trigger a gain on 40 million shares. Trump would be eligible to receive 90%, or 36 million. At current prices, this would be valued at over $1.25 billion, given the current price.

Currently, Trump would not be able to cash out these shares, due to lock-up restrictions, although the company’s board of directors has the authority to waive them. However, as he is the company’s largest shareholder, any significant stock sales by him could cause the company’s valuation to fall even further. (With this expected additional payment, he will own 114.75 million shares of the company, or 65% of his total stock.)

The analysts are skeptical of Trump Mediasaying it the company is overvalued and the stock price does not accurately reflect the company’s fundamentals.

Trump Media lost $49 million in the first nine months of last year, despite generating just $3.4 million in revenue. Over the past month, the company’s market capitalization increased from $10 billion to $4.78 billion. Shares were down 4% as of mid-morning Monday.

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