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Donald Trump will get $1.3 billion in Trump Media bonus shares if the stock doesn’t crash today

In Business
April 24, 2024
Trump smiles

Former President Donald Trump.Scott Olson/Getty Images

  • Trump is set to get millions of extra shares if Trump Media trades above $17.50 through Tuesday’s session.

  • That would see the former president awarded $1.3 billion in extra stock.

  • The stock has risen slightly this week, trading Tuesday at about $34.

Trump Media & Technology just has to manage not to crash Tuesday for former President Donald Trump to be awarded an extra $1.3 billion worth of stock in the Truth Social parent company.

Company insiders are set to receive millions in bonus shares, with 36 million designated for the majority stakeholder, Trump, Bloomberg reported. The stock needs to trade above $17.50 by the end of the day for the reward to kick in. The stock was trading at about $34 a share Tuesday morning.

The bonuses set to be paid to Trump Media execs are part of the special-purpose-acquisition-company deal that took the company public, which says the stock has to trade above the $17.50 mark for 20 days in a 30-day period, according to Bloomberg.

It would mark a windfall of $1.3 billion for Trump, though he and other insiders remain unable to cash out and sell shares because of a six-month lockup period, though Trump Media has filed to allow stock sales inside that time limit.

While the profits are still just on paper, the “earnout” bonuses are a boon for Trump, who has watched the value of his shares tank through April.

When Trump Media made its market debut in late March, the stock peaked sharply before crashing nearly 40% in a matter of weeks. The massive plummet erased over $3 billion of his windfall, valued at more than $5 billion at its height.

But that hasn’t done away with willing buyers, a cohort made up of Trump supporters active on Truth Social, the firm’s social-media platform.

Last week, Trump Media CEO Devin Nunes lashed out at short sellers for helping to tank the stock. The complaint earned a fierce reply from Citadel Securities, which was named in a letter from Nunes:

“Devin Nunes is the proverbial loser who tries to blame ‘naked short selling’ for his falling stock price,” the firm said.

Read the original article on Business Insider

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