At least on paper, Donald Trump increased his wealth by another $1.8 billion.
Trump Media & Technology Group, the parent company of Truth Social, gave its namesake an additional 36 million shares of the company as a bonus for keeping the stock price above set limits, as published in a filing with the Securities and Exchange Commission.
The payout was expected. At current prices, the number of shares is worth $1.8 billion, but that amount is likely to fluctuate just as much as the stock has in recent weeks. This gives Trump control of almost 65% of the company’s shares. However, he is currently bound by lock-up restrictions and cannot redeem them unless the company’s board waives them.
The payout came after Trump Media shares stayed above $17.50 for 20 days in its first 30 days on the market. Since trading began, shares have been well above this price, although there has been a wide range of fluctuations between a high of $66 and a low of $22.
If Trump were to sell a significant portion of his shares, it could make the situation even more volatile for the company given his significant ownership stake.
Analysts remain skeptical of Trump Media, saying the company is overvalued and that its stock price does not accurately reflect the company’s fundamentals.
Trump Media lost $49 million in the first nine months of last year while generating just $3.4 million in revenue. Last monthThe company’s market capitalization fell from $10 billion to $6.32 billion. Shares fell more than 7% in mid-morning trading on Monday.
The latest cash injection has brought Trump back onto the scene Bloomberg Billionaires Index again after being delisted on April 11 due to the falling price of Trump Media shares. As of Wednesday morning, he was ranked 308th.