Truth Social's deal to go public increased Donald Trump's estimated net worth.
A major windfall for former President Donald Trump that doubles his net worth has been created as a result of the announcement that Trump Media & Technology Group, the owner of Truth Social, has finalized its arrangement to go public.
After Trump Media made the announcement that company will begin trading on the stock market on Tuesday, President Trump became the first person to be included on the list of the 500 wealthiest individuals in the world, as compiled by the Bloomberg Billionaires Index.
The wealth of Donald Trump is projected to have increased by $4 billion on Monday alone, bringing his total fortune to $6.5 billion, according to Bloomberg.
The successful completion of the merger between Trump Media and Digital World Acquisition Corp. results in a windfall for Trump which amounts to multiple billions of dollars. Trump is the chairman of the new company and the majority shareholder in the new business.
After hearing that the merger had been successfully completed, shares of Digital World increased by 21%. On Monday afternoon, purchasing activity persisted, which resulted in Digital World reaching a price of almost $51, which was 39% higher than the previous day. It is estimated that Trump’s investment is worth approximately $4 billion at the present price. On the other hand, there are lock-up requirements that would probably preclude Trump from selling or even borrowing against the value of that stock for a period of several months.
Tuesday is the day that the new firm will begin trading on the Nasdaq Stock Market under the ticker symbol “DJT,” according to the corporations that have announced the news.
The Chief Executive Officer of the combined company, Devin Nunes, issued a statement in which he stated that the company will engage in activities to “reclaim the Internet from Big Tech censors.”
“We will continue to fulfill our commitment to stand up to the ever-growing army of speech suppressors and to serve as a safe harbor for free expression,” Nunes stated. “We will continue to fulfill our commitment to the American people.”
Monday saw a more than twenty percent increase in the value of the shares of Digital World Acquisition Corp (DWAC), the shell company that is now the owner of Truth Social. During the past half year, the stock has increased by more than 170%.
Given the fundamentals of the company, several experts have expressed concern that the market is overvaluing Trump Media.
As per the filings made with the Securities and Exchange Commission (SEC), Trump Media’s revenue for the first nine months of the previous year was only $3.4 million. Over the course of that time period, the business reported a net loss of $49 million.
The user base of Truth Social, on the other hand, is decreasing at a rate that is greater than that of X, the firm that was formerly known as Twitter.
According to statistics from Similarweb that was provided with CNN earlier this month, the number of Truth Social’s monthly active users in the United States on both iOS and Android has decreased by 39%, compared to the previous year.
The trading of DWAC shares had incorporated the same type of frenzy that was seen in the stock spike of Tupperware in July of last year, or that of meme stocks AMC Entertainment and GameStop during the height of the epidemic. This was done in anticipation of the merger that DWAC was going to have with Trump Media. There are almost 8,000 people who are members of a chat group on Truth Social that is called “The DWAC Shareholder Group.” In this group, users discuss the shareholder vote to approve the merger and submit memes and messages of support.
