Former US president Donald Trump doubled his net worth and raised it to $6.5 billion as his net worth spiked by $4 billion on Monday after his social media company Truth Social finalised its deal to go public.
The company, which is owned and run by Trump Media and Technology Group, announced that the social media site will make its stock market debut on Tuesday. After this, the former US president joined the list of the world’s 500 wealthiest people on the Bloomberg Billionaires Index for the first time.
Trump was blessed with a multi-billion dollar windfall following the closing of the merger between Trump Media and Digital World Acquisition Corp. The former US president is also the chairman and dominant shareholder of the new company.
The completion of the merger drove Digital World’s shares up by 21%. By Monday afternoon, the buying frenzy pushed Digital World up by 39% to approximately $51 per share. At this rate, Trump’s stake is worth roughly $4 billion. However, lock-up restrictions are in place, likely barring the former US president from selling or borrowing against the stock’s value for several months.
The new company will begin trading under the ticker symbol “DJT” on the Nasdaq Stock Market on Tuesday.
“(It will) reclaim the Internet from Big Tech censors. We will continue to fulfil our commitment to Americans to serve as a safe harbour for free expression and to stand up to the ever-growing army of speech suppressors,” Devin Nunes, the CEO of the combined company, said in a statement, outlining the company’s goals.
Digital World Acquisition Corp (DWAC), parent company of Truth Social, saw a more than 20% rise in its shares on Monday. The stock has soared by over 170% in the past 180 days but experts have cautioned that the market may be overestimating Trump Media’s worth considering the company’s fundamentals.
Filings made in the Securities and Exchange Commission (SEC), the agency responsible for enforcing federal securities laws, regulating the securities industry, and overseeing the stock and options exchanges in the country, said Trump Media generated just $3.4 million of revenue through the first nine months of last year and posted a net loss of $49 million over that span.
A report by news agency CNN said Truth Social’s user base is shrinking faster than that of Elon Musk owned X. Citing Similarweb, the broadcaster said the number of Truth Social’s US monthly active users on iOS and Android is down 39% year-over-year.
Comments
0 comment