The parent company of Truth Social, Trump Media & Technology Group, is set to commence trading on the Nasdaq stock market this Tuesday. On Friday, shareholders of Digital World Acquisition Corp., a publicly traded shell company, voted in favor of merging with Trump’s media enterprise. Following the approval, Digital World’s shares have experienced volatility, dropping 13.7% post-merger endorsement but surging by 22% on Monday to reach $45.40.
Trump is poised to hold the majority stake in the merged entity, amounting to 79 million shares, with an estimated value likely exceeding $3 billion. However, the former President cannot immediately liquidate his holdings unless the company’s board modifies a “lock-up” provision, preventing insiders from selling newly issued shares for six months.
On Monday, Trump attended a hearing in New York regarding his criminal hush money case, securing a victory as a New York appeals court reduced his civil fraud judgment from $454 million to $175 million if he fulfills the payment within 10 days.
Truth Social debuted in February 2022, approximately a year after Trump’s expulsion from major social media platforms, including Facebook and Twitter, following the Jan. 6 Capitol incident. Despite his reinstatement on those platforms, Trump has predominantly favored Truth Social and has frequently expressed his fondness for the platform.
Trump Media has not revealed the user metrics for Truth Social, but as the company is now publicly traded, details such as user counts will likely be disclosed soon.
While Trump stands to benefit significantly, the platform itself, characterized as a bastion of free speech and a refuge from Big Tech censorship, can anticipate gaining momentum as well. With the potential to secure $300 million from the merger, it can further its expansion efforts.
The common stock of Trump Media & Technology Group will be traded under the ticker symbol “DJT.”
