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.
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.