Donald Trump just got another $1.8 billion worth of Trump Media stock

Donald Trump just got another $1.8 billion worth of Trump Media stock

Former President Donald Trump just acquired another $1.8 billion worth of stock in corporate owner Truth Social.

Trump Media & Technology Group revealed an unfortunate fate for Trump in a filing on Tuesday, saying the former president had received another 36 million shares in the company.

The bonus, known as “performance” stock, is triggered by the company’s stock price remaining above a certain level.

Trump Media said in a filing that on April 26 it officially determined the performance criteria “had been met” and that Trump “then issued Earnout Shares.”

At current prices, the new shares are worth about $1.8 billion on paper – even though share prices are highly volatile.

Trump now holds a more dominant stake in Trump Media, amounting to 114.75 million shares, or 64.9% of the total.

According to the SEC filing, the full vesting of 40 million shares to pre-merger shareholders will be paid if the company’s dollar volume-weighted average price equals or exceeds $17.50 for any 20 trading days in any 30-day trading period beginning on March 25.

Tuesday, April 23rd marked the 20th trading day for Trump Media, and the stock did not trade below that $17.50 level at any point during that time.

The value of Trump’s stake in the company — and his overall net worth — has swung wildly in recent weeks along with volatile stock prices.

Trump’s newly acquired earnings shares are subject to lock-up restrictions that prevent insiders from selling or even borrowing against their shares for months, according to the filing.

Even if Trump were able to overcome the lock-up deal, experts said it would be challenging for him to sell his stake quickly without affecting stock prices. Trump is not only the chairman and most popular user on Truth Social, he is by far the largest shareholder.

Trump Media’s stock price has been subject to extreme volatility.

It peaked at $66 on March 27, its second day as a public company. The stock fell to a post-merger low of $22.84 on April 16 and has since more than doubled to nearly $50.

Although Trump Media has plummeted since late March, it has never come close to breaching levels that would threaten this bonus.

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