Trump stock tanks after issuing tens of millions new shares

Trump stock tanks after issuing tens of millions new shares

Apr 15,2024
CNN  — 

Trump Media & Technology Group’s stock is tumbling again after the company announced a massive new influx of 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 14% Monday in premarket trading.

Trump currently owns more than 57% of the company’s shares. Unless he were to purchase stock in the new public offering, Trump would own just under half of the company’s publicly traded stock after it issues more shares.

But the company needs money. It has said it has substantial doubt about its ability to continue operating. The company generates little revenue, it’s losing millions of dollars and it is losing many of its users as well.

Although the share offering was not directly related to Trump’s criminal trial beginning Monday, the company noted in a warning to potential investors that Trump’s ongoing legal proceedings pose a risk to the company’s reputation and brand.

“President Donald J. Trump is the subject of numerous legal proceedings. An adverse outcome in one or more of the ongoing legal proceedings could negatively impact TMTG,” the company noted. “If President Donald J. Trump were to cease to be able to devote substantial time to Truth Social, TMTG’s business would be adversely affected.”

This is a developing story and will be updated.

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