Monday proved to be a challenging day for former President Donald Trump as his net worth took a significant hit, plummeting by $1 billion. This financial downturn was triggered by the revelation of substantial losses incurred by Truth Social, a key venture under Trump Media & Technology Group, which subsequently led to a dramatic nosedive in its stock value.
The financial community watched as the company, once buoyed by the fervent support of Trump’s base, collided with the harsh realities of its fiscal performance. Reports unveiled that Trump Media & Technology Group faced a daunting $58 million net loss over the past year, coupled with a modest revenue stream of merely $4.1 million.
This stark financial landscape caused Trump’s ownership stake in the company to shrink from $4.89 billion down to $3.84 billion. Amidst these financial tribulations, an existing lockup agreement further complicates Trump’s ability to mitigate his losses, restricting the sale of his shares for a minimum of six months unless he secures approval from the company’s board, told Axios.
The situation grew more precarious as accountants from Trump Media issued stark warnings, suggesting the company’s financial losses cast serious doubts on its sustainability and future operations. This grim assessment was shared just as Trump’s TMTG embarked on a new chapter, merging with Digital World Acquisition Corporation to trade publicly on the Nasdaq under the ticker symbol DJT, echoing Trump’s initials.
Despite the infusion of $300 million in capital through this merger, experts like Michael Ohlrogge, an associate professor at NYU School of Law, expressed skepticism regarding the company’s financial runway. Ohlrogge pointed out that, given the current rate of financial bleed, the new funds might offer only a temporary reprieve, told CNN.
Even with these challenges, Trump Media’s valuation has seen an impressive surge of nearly 200% since the start of the year. However, this financial upheaval occurs as Trump grapples with an array of other financial pressures, including significant legal fees from ongoing criminal cases, substantial settlements in civil lawsuits, and the costs associated with a potential presidential campaign.
As Trump navigates these multifaceted financial and legal challenges, he continues to explore unconventional revenue streams, ranging from selling branded Bibles to golden sneakers, in an effort to shore up his financial reserves and maintain his political and business endeavors.
