Former President Donald Trump has received an additional $1.8 billion worth of stock in the corporate owner of Truth Social, Trump Media & Technology Group. This windfall for Trump comes in the form of 36 million shares triggered by the company’s share price remaining above certain levels. The performance criteria for the bonus shares were officially satisfied on April 26, according to a filing by Trump Media.
This new stock grant increases Trump’s stake in Trump Media to 114.75 million shares, representing 64.9% of the total outstanding shares. The earnout of 40 million shares to pre-merger shareholders would be paid if the company’s share price equaled or exceeded $17.50 for 20 trading days within a 30-day period, which was achieved by April 23 without the stock dropping below that level.
The value of Trump’s stake in Trump Media has fluctuated significantly in recent weeks due to the volatile share price of the company. The earnout shares Trump received are subject to lock-up restrictions, preventing insiders from selling or borrowing against their stock for several months. If Trump were to attempt to sell his stake quickly, experts believe it could impact the stock price negatively given his substantial ownership in the company.
Trump’s dominant position as the largest shareholder in Trump Media and his role as the chairman and most prominent user on Truth Social raise challenges in managing his stock holdings. While his net worth has seen significant swings along with the fluctuating share price, Trump’s ownership of the company and restrictions on selling present obstacles for him to liquidate his stake without negatively affecting the stock’s value.
Overall, Trump’s additional $1.8 billion worth of stock in Trump Media, earned through the earnout shares triggered by the company’s share price performance, solidifies his significant ownership stake in the company. The volatility of the share price and restrictions on selling the newly acquired shares present challenges for Trump in managing his assets without potentially impacting the stock price. Despite the fluctuations in his net worth, Trump’s dominant position in Trump Media remains unchanged, emphasizing his substantial influence within the company.
