Trump Media & Technology Group (TMTG) is facing a tumultuous time as its stock takes a nosedive following the announcement of a new influx of shares. The company, struggling to stay afloat with mounting losses, has decided to add 21.5 million shares for sale in a move that could significantly devalue existing shareholders’ stakes.
The decision to sell more stock has upset shareholders, including former President Donald Trump, who have already seen their holdings dwindle in value. Trump’s net worth fell roughly $470 million on Monday alone as the stock plunged, with TMTG losing more than 60% of its value since going public.
Despite the sharp decline in stock value, management believes that the move to sell more shares is necessary for the company’s survival. The company lost $58 million in 2023 and made just $4.1 million in revenue, raising doubts about its ability to continue operating.
Trump, who owns more than 57% of the company’s shares, may see his stake decrease to just under half after the new shares are issued. Legal proceedings against Trump could also negatively impact the company’s reputation and brand, further adding to the uncertainty surrounding TMTG’s future.
The volatility of the stock, coupled with the financial struggles and potential legal issues involving Trump, have left investors wary of the company’s prospects. However, some may see the current dip in stock price as a buying opportunity, with the understanding that the downward trend may be temporary.
The future of TMTG remains uncertain as it navigates through its financial woes and potential legal challenges. If Trump were to reduce his involvement in Truth Social, the company’s social media platform, it could further impact TMTG’s business negatively. Investors and stakeholders will be closely monitoring the developments at TMTG as the company tries to weather the storm.
