The Strategist

Trump Media shares fall by 21% after statements about 2023 losses and risks

04/02/2024 - 06:45

Truth's parent company, Trump Media & Technology Group, announced on April 1 that it lost over $58 million in 2023 and could find it difficult to pay its debts going forward.

Gage Skidmore
Gage Skidmore
According to Reuters, on April 1, shares of Trump Media & Technology Group (TMTG), the company that runs Truth, a social network designed to facilitate communication between Donald Trump and his fans, dropped by 21%. 

After concluding the merger with SPAC Digital World Acquisition, the company closed at $58 per share on March 26 on the first day of trading on the Nasdaq platform. On April 1, it finished at $48.66 per share. On April 1, Donald Trump's net worth decreased by $1 billion to $5.7 billion, as per Forbes Real-Time statistics.

Following the company's March 26 Nasdaq public offering, Trump's ownership position was estimated to be little over $4.5 billion. In contrast, according to data cited by Reuters, the social network Reddit has a market capitalization of $8 billion. For a period of six months, Trump is not allowed to sell or borrow against any of his shares; any attempt by him to modify this agreement would probably result in additional sales, the agency notes.