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.

  • SeaJ@lemm.ee
    link
    fedilink
    arrow-up
    23
    arrow-down
    1
    ·
    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.

      • SeaJ@lemm.ee
        link
        fedilink
        arrow-up
        25
        ·
        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 So Trump failing to do so is even worse than if it was some outdated practice.