Here's how Donald Trump is about to pocket $1.2 billion amid mounting legal woes - Hindustan Times
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Here's how Donald Trump is about to pocket $1.2 billion amid mounting legal woes

Apr 24, 2024 07:07 AM IST

Donald Trump is set to increase by $1.2 billion through a bonus from Trump Media & Technology Group’s IPO.

Former US President Donald Trump is expected to reap quite a gain of $1.2 billion through a Trump Meidia's earnout bonus.

Former US President Donald Trump speaks to the press after attending his trial for allegedly covering up hush money payments linked to extramarital affairs, at Manhattan Criminal Court in New York City on April 23, 2024. (Photo by Yuki Iwamura / POOL / AFP)(AFP)
Former US President Donald Trump speaks to the press after attending his trial for allegedly covering up hush money payments linked to extramarital affairs, at Manhattan Criminal Court in New York City on April 23, 2024. (Photo by Yuki Iwamura / POOL / AFP)(AFP)

According to a regulatory filing, this windfall stems from Trump Media & Technology Group's recent public debut, wherein Trump stands to gain 36 million additional shares if the company maintains a trading threshold of $17.50 per share over a specified period.

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What's behind Trump's expected $1.2 billion gain?

Stock tags, DJT, are being held up at the level previously proposed, assuming these shares remain at an ending price of $32.56 and the former president's current dollarized valuation reaches $ 1.2 billion.

But, TTrump and other company executives, will face a lockup period that prohibits him from selling off the millions of other shares that have been issued to him.

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While this promise of a financial boon is coming true, Trump Media has not been immune to the multi-faceted difficulties ever since going public, experiencing fluctuations in its stock price.

CEO Devin Nunes has voiced concerns over potential stock manipulation, blaming the company's rollercoaster performance on illicit short-selling tactics.

Trump Media protecting investors amid market volatility

Trump Media's investor base primarily comprises individual supporters, with Nunes highlighting the absence of institutional investors and Wall Street involvement.

Approximately 600,000 retail investors have rallied behind the company.

“[W]e don't have any institutions, zero Wall Street money,” Nunes told Newsweek.

While dealing with market volatility, Trump Media has taken steps to safeguard its investors, advising long-term shareholders on measures to prevent their shares from being utilized in “short sales.”

ALSO READ| Trump hush money trial: Judge tells former president's lawyer ‘you're losing all credibility’

While acknowledging the legality of short selling, the company aims to protect those who believe in its “long-term shareholders who believe in the company's future” by offering guidance on opting out of securities lending programs and avoiding margin accounts.

Investors' firm confidence was based on the votes of the group and the fact that the stock market was vulnerable to the instability of “meme” stocks, like Gamestop.

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