Trump Just Got MASSIVE Financial Win!
Former President Donald Trump's social media platform, Truth Social, has been established, and shareholders of the holding company controlling it have approved the company's move to go public, potentially providing the Republican with up to $4 billion in cash amid ongoing criminal and legal challenges.
Truth Social is set to be listed on the NASDAQ Stock Exchange under the ticker symbol 'DJT' following approval from the Trump Media & Technology Group's owners to merge with Digital World Acquisition Corp, a special purpose acquisition company (SPAC).
President Trump could gain between $3.5 and $4 billion in new net assets if projections for the new entity hold true, as reported by CBS News. However, converting paper value into actual dollars could present challenges.
Trump would need to sign a waiver permitting the liquidation of his stock before a six-month lockup period, enabling him to post a $454 million bond required to settle his real estate judgment in New York.
Lockup provisions are intended to prevent company owners from hastily selling stocks for quick profits, which could leave regular investors vulnerable in a volatile market.
In case Trump fails to provide the necessary amount, New York Attorney General Letitia James has threatened to initiate asset seizures by Monday. His attorneys have stated that lenders are unwilling to extend support.
Despite reportedly having $500 million in cash reserves, there are concerns that he might need to quadruple that amount to cover the judgment while it undergoes appellate review.
🚨BREAKING: Shareholders have just voted to make Trump Media & Technology Group, the parent company of Truth Social, a publicly traded company. This could net Trump a windfall of $4 billion. The President would need to seek a waiver to liquidate his stock before the end of a…
— Charlie Kirk (@charliekirk11) March 22, 2024
Following his suspension from Twitter in 2021, which was then known as X, due to comments related to the January 6, 2021 breach deemed false by Twitter's previous owners, President Trump launched Truth Social.
A public offering increases the potential for Trump's supporters to drive up the stock price on its debut, potentially boosting the proceeds he receives personally, given the sympathy toward him amid ongoing legal challenges.
President Trump faces financial challenges beyond his New York case, having raised more funds than his various political action committees—used for covering legal expenses—collected in 2023.
He has reportedly paid over $50 million thus far, but he still owes his legal team $8.5 million.
Despite financial challenges, Truth Social appears to be a promising venture for the former president. Regulatory filings indicate the social media startup generated $3.7 million in sales during the first quarter of 2023. While the platform is still operating at a loss, a successful public offering could attract new advertisers dissatisfied with X, potentially giving Trump's platform a competitive edge.