Trump Media & Technology Group’s stock is tumbling again after the company announced a massive new influx of shares. The struggling company is rapidly losing money, and a new stock offering could help it stay afloat.

But there’s a downside to going back to the market with new shares: A new public stock offering of 21.5 million shares announced Monday would add more than 15% more stock to the publicly available shares of the Truth Social owner. That would substantially devalue existing shareholders’ stakes — including that of former President Donald Trump.

Shares of TMTG (DJT) fell more than 15% Monday. The stock had rocketed higher in recent months in anticipation of merging a blank-check acquisition company with Trump’s media business. But it has lost more than 60% of its value from its peak on March 26, the day after the merger was completed and it started trading publicly as TMTG.

  • mozz@mbin.grits.dev
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    7 months ago

    Usually, if you’re running for president, you want to invest money into political or media machines that are going to create true believers for you

    If you’re taking the already existing true believers, who think you’re a business genius and all your prosecutions are politically motivated and the election was stolen (like really honestly think all of that is what happened, because they are too deep sunk in propaganda to even see the surface)… and creating an opportunity for them to lose a bunch of their own money by investing in your company, like really be exposed on a personal unavoidable level to how much of a fraud you are and always have been… you’re doing it wrong.

    I get it. It’s desperation; you have to siphon money out of them because you need all you can get right now. But it still seems like a tactical error, like there must be another way.

    • SeaJ@lemm.ee
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      7 months ago

      Usually, if you’re running for president, you want to invest money into political or media machines that are going to create true believers for you

      No. Usually if you are running for president, you put your investments into a blind trust.

      • TropicalDingdong@lemmy.world
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        7 months ago

        No. Usually if you are running for president, you put your investments into a blind trust.

        what with his faith in humanity and all.

        The 70’s are over. Carter putting the farm in a blind trust was rewarded with Republicans bribing Iranian terrorists to keep the hostages longer. Disco is dead.

        • SeaJ@lemm.ee
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          7 months ago

          The 70s, the 80s, the 90s, and the 2000s. Presidents aside from Trump have always put their investments in a blind trust.

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              7 months ago

              I’m correcting you when you implied that this a practice of decades ago. It is not. It has been the standard. Trump is the exception. I don’t foresee that changing. So Trump failing to do so is even worse than if it was some outdated practice.

                • marx2k@lemmy.world
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                  7 months ago

                  Even the blind trust knows that’s a terrible investment.

                  In all seriousness, what’s the over under whether the company will be delisted from nasdaq this month?

                  • TropicalDingdong@lemmy.world
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                    7 months ago

                    not gonna happen. it’s taken some hits but there is a good enough chance that Trump will be the next president that it’s not going anywhere.

    • Ultragigagigantic@lemmy.world
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      7 months ago

      It’s the deep state shorting the stock bro. Trust me bro. Just keep buying the stock bro.

      Trump’s social media stock is gonna bring down wall street, make you rich, stop the liberals, suck your dick, stop communism, let you suck its dick, stop the RINOs, and help Russia stop the nazis.

      /$

    • MustrumR@kbin.social
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      7 months ago

      Are you implying that Trump believers with faith deep enough to buy the stock regularly (eg they’re not an oligarch/enterprise doing it to bribe Trump) is thinking this logically?

      People either vote for him for other reasons (tax cuts for the rich, conservatism, fear for the border or racism) or are deep enough into a cult to disregard anything.

      • mozz@mbin.grits.dev
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        7 months ago

        Yeah, maybe. His cult is absolutely surrounded by a singular media drumbeat of him being smart, him being rich, him being a winner, the Democrats being bad and evil and jealous and cheaters at the election and just every bad thing in the world. I’m not saying that losing a whole bunch of their personal money because they operated on that model will definitely in itself break them out of the illusion; I definitely think some of them are in too deep even for direct personal experience to impact their perception (especially if the drumbeat is continuing exactly as before). But it’ll at least give them a saving throw or something I think.

    • Buffalox@lemmy.world
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      7 months ago

      If you have made it your whole life through cheating, and you think cheating worse than everybody else makes you smart, cheating becomes the only way you know to accomplish anything.