The main stakeholder in the corporation, former President Donald Trump, had his share price plummet almost 10% on Tuesday, extending the stock’s decline to nearly 40% since his conviction last month.
Apart from the 9.8% decline on Tuesday, when there was a large trading volume of 7.52 million shares, Trump Media shares also experienced a more than 17% drop in after-hours trading, ending at $27.08.
Tuesday’s closing price of almost $5.5 billion for the stock, which goes by the symbol “DJT” and powers the Truth Social platform, came just before the deadline of June 18—a date that may allow some investors to exercise their warrants.
In a filing with the Securities and Exchange Commission dated April 15, Trump Media revealed its intentions to offer approximately 21.5 million shares of common stock that would be issued “upon the exercise of warrants.”
Officials at Trump Media, who have attributed the current market decline to stock manipulators and short sellers, are pleading with authorities to pursue criminal charges in the event that any illicit short-selling is verified.
The business also changed its registration statement on Tuesday, alerting investors to the possibility that Trump may be permitted to utilize social media sites other than Truth Social given that the former president has gained millions of followers since signing up for TikTok.
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“If TMTG disagrees with President Donald J. Trump about the scope of his obligation to use, or first post on, Truth Social, TMTG lacks any meaningful remedy with respect to such disagreement — which could have a material adverse effect on the business and/or operations of TMTG,” the business stated in an amended statement.
In the last six months, Trump Media’s stock has increased by more than 94%, per Benzinga Pro. In its May earnings report, Trump Media revealed a net loss of $327.6 million and total sales of $770,500 for the first quarter of this year.
On May 30, in New York, Trump was found guilty on 34 charges of faking official business records to conceal an extramarital affair with adult film star Stormy Daniels. He entered a not guilty plea to all counts and denied having an affair.
