Former US President Donald Trump’s social media startup, Truth Social, had a massive spike on its first day of trading on the stock market, with the price surging more than 50% by 10:30 a.m. ET, the stock had dropped from its initial jump to around $71 per share, 42% higher than its Monday closing price. With roughly 79 million shares, Trump has a significant majority interest in DJT, increasing his net worth to about $5.9 billion.
Trump’s net worth was estimated to be $6.5 billion before Tuesday’s opening bell, thanks to the stock market boom that won him a spot on the Bloomberg Billionaires Index. The revenue boost follows the announcement by a state appeals court in New York that if he pays the $175 million reduced payment within ten days, the $454 million civil fraud judgment would not be collected. As long as Trump posts the $175 million bail, the state of New York cannot seize his assets while he files an appeal. However, lock-up provisions that could prohibit him from selling or borrowing against his shares would probably ban Trump from utilizing his acquired money from DJT for at least six months.
Trump’s 60% ownership in Truth Social might eventually provide a multibillion-dollar bonanza. Therefore, the stock’s success will significantly impact him financially. Experts who contacted ABC News said that the stock rise is unrelated to the company’s economic situation and results from a purchasing frenzy by Trump fans and shrewd traders looking to take advantage of the momentum.
Truth Social reported $49 million in net losses for the first nine months of 2023, although making around $3 million during that time. The stock market boom coincides with Trump’s financial difficulties. On Monday, a New York appeals court ordered that Trump get a $175 million bond—a sum that is somewhat less than the $454 million that a lower court had requested. A lockup clause in Truth Social’s investment agreement prohibits Trump from selling or using its influence for at least six months. This clause aims to avoid a sudden selloff that may cause investor unease.
