Trump Media Delays Quarterly Filing Due to Auditor Change; Stock Surges, Adding Billions to Former President’s Stake

By Madz Dizon

May 16, 2024 03:55 AM EDT

Trump Media Delays Quarterly Filing Due to Auditor Change; Stock Surges, Adding Billions to Former President’s Stake
Former US President Donald Trump, with attorney Todd Blanche, speaks to the media at his trial for allegedly covering up hush money payments linked to an extramarital affair with Stormy Daniels, at Manhattan Criminal Court on May 14, 2024 in New York City.
(Photo : Curtis Means - Pool/Getty Images)

The Trump Media & Technology Group has recently filed a notice to the US Securities and Exchange Commission stating that it will be postponing its quarterly filing. 

Trump Media Unable to Complete Quarterly Financial Review

This decision comes shortly after the regulator charged the company's former auditor with fraud. The media company owned by former US President Donald Trump announced that it was unable to finish reviewing its financial statement for the quarter ended March 31. 

This delay was attributed to the timing of appointing Semple, Marchal & Cooper as the company's new auditor, CNN reported. 

Borgers, the auditor of the Truth Social parent since 2022, has reached a settlement with the SEC. As part of the agreement, Borgers will pay a $12 million civil penalty and will no longer be able to practice as accountants on SEC filings.

A surge of enthusiastic investors and supporters of the company propelled its shares to new heights, with a remarkable 59% increase on their Nasdaq debut on March 26. The stock has since then reduced its gain to approximately 5%, resulting in a market value of around $7 billion.

Truth Social's revenue experienced significant growth, increasing from $1.47 million in 2022 to $4.13 million last year.

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Trump Media Battles Short-Sellers

Meanwhile, according to NY Times, the stock of the social media company has experienced a rollercoaster ride since its introduction on Wall Street in March, with significant fluctuations in value.

The rally has significantly increased the value of Trump's majority stake in the company to approximately $6 billion.

This has provided him with a substantial financial boost as he continues to focus on his presidential campaign and grapples with the costly legal challenges he is currently facing.

On Wednesday, the share price of Trump Media & Technology Group hovered around $53, which is close to the closing price of Truth Social's parent company on its first day of trading back in March, at just under $58.

The intense trading activity surrounding Trump Media has evoked memories of the frenzy surrounding meme stocks, which are stocks that are traded based on investor sentiment and momentum rather than traditional financial fundamentals.

Last year, the company incurred a loss of $58 million, while generating only $4 million in revenue, which solely came from advertising on Truth Social.

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