New York, NY – Former President Donald Trump’s social media company made a compelling debut on the stock market, with shares of Trump Media & Technology Group, the parent company of Truth Social, surging more than 50% in its first few minutes of trading on Tuesday. The rapid increase prompted a brief trading halt to manage the volatility.
Following the trading halt, shares slightly cooled down but remained around 40% higher as the first hour of trading progressed. This significant stock market debut comes after shareholders in shell company Digital World Acquisition Corp. voted to approve a merger with Trump’s social media company, marking its entry into the public market.
The stock now trades under the ticker DJT on the Nasdaq exchange and is closely monitored due to its potential impact on Trump’s financial situation, which has been under strain. Reports suggest Trump’s net worth has surpassed $6 billion, primarily influenced by the performance of the new company.
Amid legal challenges, Trump is required to post a $175 million bond for a judgment in his New York civil fraud trial, a sum reduced from $464 million. However, Trump has claimed to have at least $500 million in cash readily available. Additionally, restrictions prevent Trump from selling his shares for six months following the merger, though this could change based on board approval in the future.
Questions loom over the company’s financial standing as recent data show Trump Media incurred losses exceeding $49 million in the first nine months of the previous year, despite generating revenue of nearly $3.4 million. In comparison, Twitter’s former entity, X, reported revenue of approximately $2.5 billion in the same period.
As developments unfold, the market eagerly awaits further updates on Trump Media & Technology Group’s performance. Stay tuned for more details and potential shifts in the company’s trajectory.