Trump Media & Technology Group Corp. is facing a tumultuous start as its shares have plummeted, resulting in a loss of $4.5 billion in market value in just a few weeks. Despite this steep decline, the massive special bonus due to former president Donald Trump and his corporate insiders is not yet at risk.
As part of the startup’s blank-check deal, Trump Media insiders, including Trump himself, could receive 40 million new shares if the stock trades can stall their latest slide. These earnouts are a standard part of deals involving special purpose acquisition companies (SPACs) and are designed to reward original investors, but also dilute the value of shares for ordinary shareholders.
The potential issuance of millions of extra shares could further impact the value of shares for ordinary shareholders in Trump Media & Technology Group Corp. This news has raised concerns among investors as the value of their investments could continue to decrease.
Despite these challenges, the company remains optimistic about its future prospects. The recent setbacks have not deterred Trump and his team from pushing forward with their plans for the media and technology venture. It remains to be seen how the company will navigate through this rough patch and regain the trust of its shareholders.
Overall, Trump Media & Technology Group Corp. is facing a rocky road ahead as it grapples with the loss in market value and the potential impact on ordinary shareholders. Stay tuned for more updates on this developing story.
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