Trump eligible to receive $1.17B Truth Social stock bonus
Former President Donald Trump has met the requirement to receive up to 36 million additional shares of Trump Media, worth $1.17 billion at the close of the market Tuesday.
Trump Media is the parent company of Truth Social, Trump’s social media company.
The earnout bonus, a potential for a future windfall if the company meets financial goals, is a provision in the merger agreement with Digital World Acquisition Corp., according to a Securities and Exchange Commission filing. It states that Trump is entitled to the additional shares if the stock price stays above certain thresholds for 20 days out of any 30 trading days.
Trump already owned 60% of the company, 78.75 million shares. The DJT stock price nosedived a few weeks after debuting on the stock market, but has stayed well above the $17.50 per share threshold in its 20 trading days.
At close on April 23, Trump Media & Technology Group Corp shares held steady at $32.56.
Trump’s legal cases come with a mounting price tag. The presumptive GOP presidential nominee has been ordered to pay a combined $537 million across two civil cases, both of which he is appealing.
At one point, the Trump Media shares were a potential source of funding to make bond for those payments.
Truth Social’s market history
Trump founded his social media company in 2021 after being booted from other major platforms following the Jan. 6 riots at the U.S. Capitol.
Trump Media went public on the Nasdaq on March 26 through a merger with shell company Digital World Acquisition Corp., a special purpose acquisition company, or SPAC. The merger was announced in 2021.
Its stock market debut was splashy, with Trump Media shares soaring, helped partly by – and to the delight of – his loyal MAGA supporters.
However, regulatory filings show the company was operating at a loss in 2023, making approximately $4 million in revenue while losing more than $58 million.
Experts have told USA TODAY they expect the stock’s price to remain volatile.
Contributing: Bailey Schulz, Jessica Guynn, Jeanine Santucci, USA TODAY.