Update: Trump Media & Technology Group’s shares concluded trading on Tuesday at $57.99, putting the company’s value at close to $8 billion and Donald Trump’s ownership stake at over $4.5 billion. The figures in this article have been adjusted to reflect the closing price on Tuesday.
Donald Trump saw his wealth soar by over $4 billion today following the commencement of trading for Trump Media & Technology Group, the operator of the Truth Social platform, on the Nasdaq. Forbes now estimates Trump’s net worth to be $6.4 billion, up from an estimated $2.3 billion before shareholders approved the long-awaited plan to take TMTG public last week. This places the former president among the 450 wealthiest individuals globally, according to Forbes’ real-time tracking.
This dramatic surge in wealth marks a significant turnaround for Trump, whose net worth had been declining in recent years due to depreciation of assets such as office space and retail real estate. Additionally, he faces over $540 million in legal judgments from two court cases in New York state, liabilities which Forbes has subtracted from its estimate of his net worth while he pursues appeals. Trump’s nearly 79 million shares in Trump Media & Technology Group, traded under the symbol DJT (reflecting his initials), now represent his largest asset, worth almost twice as much as all his real estate, resort, and cash holdings combined.
However, the extent to which Trump can utilize this newfound wealth remains uncertain. Although his shares are valued in the billions on paper, a lock-up agreement prevents him from selling any stock or using it as collateral for loans for a period of six months. The trajectory of the shares by the end of this period is unpredictable. The stock has been volatile since TMTG initially agreed to go public through a merger with a blank check special purpose acquisition company (SPAC) in October 2021. The SPAC’s shares surged to $94.20 upon the announcement before fluctuating significantly based on developments regarding the merger and investor sentiment towards Trump himself. The stock surged over 40% on Monday alone, ahead of the SPAC’s merger with TMTG.
Should the stock maintain its high valuation over the next six months, Trump may have the opportunity to sell some or all of his shares for billions, potentially easing the financial burdens of his legal battles. However, companies that go public via SPAC mergers typically witness declines in their share prices post-trading commencement. Moreover, TMTG is no ordinary entity. Despite its $8 billion valuation, Truth Social has garnered fewer than 9 million users, facing tough competition from established platforms like Facebook and Elon Musk’s X (previously Twitter). The platform incurred losses of $40 million over the past four quarters, with revenue amounting to a mere $4.6 million—less than half of an average Cheesecake Factory restaurant’s revenue.
