Shares of Trump Media & Technology Group (DJT) have reached a milestone that will provide former US President Donald Trump with an additional $1.2 billion, Yahoo Finance reports, UNN writes.
Details
According to US regulatory filings, Trump is entitled to an additional 36 million shares if the company's share price trades above $17.50 "for twenty of any thirty trading days" over the next three years.
Trump received his bonus at the end of the trading session on Tuesday, with shares trading at around $33 per share at the close, the newspaper writes.
Trump Media, the parent company of Truth Social, went public on the Nasdaq after merging with Digital World Acquisition Corp. in a deal approved by shareholders late last month. Shares have fallen nearly 60% since the end of March.
Trump owns approximately 60% of the company's shares. At its current level, Trump Media's market capitalization is approximately $4.4 billion, giving the former US president a stake worth about $2.6 billion. Immediately after the company's public debut, Trump's stake was worth just over $4.5 billion.
The former US president founded Truth Social after he was banned from major social networks such as Facebook and Twitter (the platform now known as X) following the January 6, 2021, Capitol Hill riots. Trump's accounts have since been reinstated on these platforms.
According to updated regulatory filings released earlier this month, Trump Media reported sales of just over $4 million and a net loss of nearly $60 million for the full year ended December 31. The company warned that it expects losses to continue amid growing profitability issues.
The document also confirms that interested parties will continue to be subject to a six-month lock-up period before selling or transferring shares. The only exception to the lockup period would be if the company's board of directors votes to approve a special authorization. While this is possible, experts told Yahoo Finance last month that this attempt would likely lead to numerous lawsuits on behalf of public shareholders.
Addendum
Trump is facing a $454 million fine for fraud and lack of campaign funds ahead of his rematch in the 2024 election against incumbent US President Joe Biden.
Trump recently posted a $175 million bail in the fraud case, which suspends the final payment while he appeals the verdict.
He is also under investigation in a criminal case related to alleged payments to adult film star Stormy Daniels.