The share price of Trump Media, listed under Trump's initials DJT, has increased from $58 before Tuesday's opening of the stock exchange to approximately $66 now, reaching $77 along the way. The company, whose main product is the former president's social networking site TRUTH Social, made its debut on the stock exchange on Tuesday, when it merged with a shell company (so-called SPAC, special purpose acquisition) DWAC, listed on Nasdaq. On Monday, still under its old name, the company gained 35%. increase after the New York Court of Appeals reduced it from $454 million to $175 million. the amount of bail that Trump must post to appeal against his nearly half-a-billion-dollar sentence for inflating the value of his assets.
As the Wall Street Journal notes, the debut listings of Trump's company are “shocking” and mean that the value of the former president's shares – he holds the majority of shares – has increased to over $5 billion. The daily claims that this is a significant strengthening of the situation of Trump, who is struggling with financial and legal problems, and was unable to provide the PLN 454 million guarantee originally required by the court.
CNBC television notes that the increase in the company's price is the result of the actions of supporters of the former president, noting a huge disproportion between the company's value on the stock exchange and its results. Even though Trump's TRUTH Social portal has existed for three years, it has only about 5 million users, and in the first three quarters of last year. reached USD 49 million. losses with revenues of only PLN 3.4 million.
In a prospectus for investors before going public, Trump's company admitted that its value was “inextricably dependent” on the former president's reputation and fortunes, including the results of his court cases and the presidential election. According to the Wall Street Journal, it is unclear when Trump will be able to sell his shares. Regardless of the decision to sell, the high value of the company's shares will allow Trump to use them as security for loans and credits.
Typically, this is only possible six months after the stock exchange listing, but the company's management board may decide to make an exception. The board includes people with close ties to the former president, including his son Donald Jr., as well as former White House and Pentagon official Kash Patel, former U.S. Trade Representative Robert Lighthizer and former Republican congressman Devin Nunes.
From Washington Oskar Górzyński (PAP)
