Truth Social Parent Company’s Stock Price Surges in Nasdaq Debut, Giving Trump Financial Boost

The surge could give President Trump — who is facing hefty legal fines — a much-needed financial boost, though it’s not yet clear when he will be able to cash in.

AP/John Minchillo
The Truth Social account for President Trump is seen on a mobile device. AP/John Minchillo

Shares in Truth Social’s parent company — which began trading on the Nasdaq for the first time on Tuesday — quickly soared by nearly 50 percent Tuesday morning, even temporarily triggering a halt on trading. 

The trading comes at a time when President Trump is facing hefty legal fees from a civil fraud case brought on by New York’s attorney general, Letitia James. Mr. Trump had faced financial difficulties obtaining the $454 million bond that was set to be due this week, but a judge on Monday extended the deadline and slashed the bond to $175 million as Mr. Trump’s appeal is pending. 

The stock market surge could give Mr. Trump a much needed financial boost, though it’s not yet clear when he will be able to cash in. In an effort to promote stability within the leadership of the company, the merger agreement prevents major stakeholders from selling their shares for six months — a typical “lock-up” provision for these types of deals. 

A seven-member board of Trump Media — which includes several former members of his administration and Mr. Trump’s son, Donald Trump Jr. — could decide to issue Mr. Trump a waiver to allow him to sell, the Wall Street Journal notes

Mr. Trump holds an approximately 60 percent stake in Trump Media & Technology Group Corp, which is trading under the ticker “DJT” after being acquired by a blank-check company called Digital World Acquisition Corp on Monday. 

Many of the investors on Tuesday are supporters of Mr. Trump or smaller investors wanting to make money off of the fray, the Associated Press notes, yet it’s not clear how the investments will hold up — Trump Media lost $49 million in the first nine months last year and has said it expects to lose money “for the foreseeable future.” 

Trump Media & Technology Group’s chief executive, Devin Nunes, appeared optimistic about the social media platform in a statement on Monday. 

“As a public company, we will passionately pursue our vision to build a movement to reclaim the Internet from Big Tech censors,” he said. “We will continue to fulfill our commitment to Americans to serve as a safe harbor for free expression and to stand up to the ever-growing army of speech suppressors.”

The company’s new director, Eric Swider, said the business combination “marks a pivotal moment” for the “broader media and technology landscape.”

As of 11:30 on Tuesday, shares were trading at about $69 per share.

The New York Sun

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