Prepare for a major shake-up at Trump Media as the former President stands to receive a hefty earnout bonus. Shares of DJT, the company’s ticker symbol, took a 9% plunge on Tuesday, with much of the movement attributed to anticipation surrounding the potential bonus of 36 million additional shares for Donald Trump.
Trump’s Golden Ticket
If the stock remains above a modest .50 per share for at least 20 trading days out of a 30-day period, the stock will trigger the release of around .15 billion worth of shares to Trump. This move will significantly increase Trump’s stake in DJT, which currently holds 78.75 million of its 386 million shares in circulation.
The Former President’s Stake
As the majority shareholder, Trump has a significant influence on DJT’s trajectory. His current shares alone are valued at .5 billion, but with the earnout bonus, his stake could soar to an astronomical .7 billion. Trump’s wealth would undoubtedly experience a major boost as a result.
Defending Against Short Sellers
In a separate move, Trump Media issued a cautionary statement on Tuesday, highlighting strategies that shareholders could employ to safeguard their stock and prevent lending for short selling. Short sellers aim to profit from stock price declines by betting against a company’s performance. Trump Media has expressed concerns that this practice may be harming the company’s stock.
Trump has previously railed against short sellers, accusing them of manipulating the market to his detriment. In a letter to Nasdaq’s CEO last Friday, Trump Media warned of “potential market manipulation” caused by “naked” short selling.
Data sourced from: cnbc.com
