Donald Trump Eligible for Bonus Shares Worth Over $1 Billion from Truth Social Parent Company

By Leira Aquino

Apr 24, 2024 01:29 AM EDT

Billionaires Are Working Together to Help Donald Trump Raise Money for $454 Million Civil Fraud Penalty — Donald Trump is in line to get a huge payout of $1.17 billion in bonus shares from Trump Media, the company that owns Truth Social.
(Photo : Win McNamee/Getty Images)

Former President Donald Trump is eligible to receive a substantial financial windfall as he becomes eligible for 36 million bonus shares worth $1.17 billion from Trump Media, the parent company of Truth Social.

This development follows a clause in the merger agreement with Digital World Acquisition Corp., outlined in an SEC filing, that grants Trump additional shares if certain stock price thresholds are maintained.

Trump Set to Receive Bonus Due to Trump Media's Performance

Trump, who already holds 78.75 million shares, equal to 60% ownership of Trump Media, is set to receive this bonus due to the stock's performance, remaining above the stipulated $17.50 per share threshold over 20 trading days out of any 30, USA Today reported.

Despite a brief downturn post-initial public offering, with shares dipping to $22.84 on April 16, the stock has since rebounded significantly.

The potential influx of nearly $1.2 billion to Trump's wealth is notable as he faces legal challenges.

Currently standing trial in Manhattan for falsifying business records, Trump's financial fortunes contrast with his legal entanglements.

The added shares, now totaling around 115 million of DJT, is valued at $3.7 billion on paper, according to CBS News.

Trump Media's Market Journey, Shareholder Dynamics

Trump Media's journey to market involved a merger with Digital World Acquisition Corp., a SPAC, in March 2024.

Despite initial enthusiasm among Trump's supporters, regulatory filings reveal operational losses for Trump Media in 2023.

The company's popularity among Trump supporters and its volatile stock market movements have caused analysts to compare it to "meme" stocks such as GameStop, as reported by CBS News.

These stocks tend to attract individual investors influenced by social media trends rather than the typical financial factors like revenue and profit growth.

Trump's bonus shares are subject to a six-month lockup period, limiting immediate liquidity.