Trump Media and Technology Group (DJT) shares reachedPlaycrashReached a milestone.PlaycrashWhich will give Donald Trump an additional $1.2 billion.
According to a regulatory document, if the company's share price exceeds 17 in "20 of any 30 trading days" in the next three yearsPlaycrashFor $50, Trump is entitled to an additional 36 million shares.
Trump received his "profit" bonus at the end of the deal on Tuesday, and the share price closed at about $33.
Truth Social's parent company, Trump Media (Trump Media), went public on Nasdaq after merging with special-purpose acquisition firm Digital World acquisition Corp. Late last month. The company's shares have fallen nearly 60 per cent since the end of March.
Short positions in DJT shares, betting that the company's share price will fall rather than rise, account for about 13 per cent of the company's outstanding shares, according to the latest data. The company recently tried to fend off short sellers by advising investors on how to prevent their shares from being lent out as short positions.
Trump owns about 60% of the company. At current levels, Trump Media has a market capitalization of about $4.4 billion, giving the former president a stake worth about $2.6 billion. Just after the company's public debut, Trump's stake was worth just over $4.5 billion.
The former president founded Truth Social after being kicked out of major social media apps such as Facebook and Twitter, now known as X, after riots in the Capitol on January 6, 2021. Since then, Trump has returned to power on these platforms.
Trump Media had sales of just over $4 million and a net loss of nearly $60 million for the year ended Dec. 31, according to a new regulatory document released earlier this month. The company warned that losses were expected to continue amid greater challenges to profitability.
The document also confirms that shareholders still have a six-month lock-up period before selling or transferring their shares. The only exception to the lock-up period is that the company's board of directors voted for a special exemption. While it is possible, the attempt could lead to multiple lawsuits by public shareholders, experts said last month.
Trump faces 4.PlaycrashHe was fined $5.4 billion for fraud and faced insufficient campaign fund-raising before running again with Biden in 2024.
Trump recently paid a $175 million deposit in a fraud case, which led him to suspend the last payment during his appeal.
He also faces a criminal trial on suspicion of paying "hush money" to adult movie star Stolmy Daniels.