Trump Media Issues Millions of Shares as Stock Falls 16

Shares of Trump Media & Technology Group (DJT) slid 16% on Monday after the parent company of Donald Trump's social media platform Truth Social filed to issue more than 21 million shares.

Monday's stock slide was a continuation of last week's sell-off, underscoring the volatility in Trump Media's share price since it went public with Digital World Acquisition Corp in late March.

Shares of Trump Media plummeted more than 20% in a single day last week after the company filed a new regulatory filing showing that Trump Media was losing money and facing "greater risk" related to former Massachusetts' ties to the platform.

In its latest filing, Trump Media said that the exercise of the warrants could result in the issuance of more than 21.4 million shares of stock following the merger with special purpose acquisition firm Digital World. The warrants allow holders to purchase shares at a specific price, usually linked to a SPAC transaction.

The company also said it is registering 146.1 million shares for resale by "sell-side security holders." More than 114.0 million shares are held by Donald J. Trump Aggregate.

Trump media last week The company reported a net loss of nearly $60 million for the year ended Dec. 31 on sales of just over $4 million. The company warned that it expects the loss to continue amid greater challenges to its profitability.

"TMTG has historically incurred operating losses and negative cash flows from operations," the document reads.

"TMTG expects operating losses and negative cash flow from operating activities to continue for the foreseeable future as it strives to expand its user base and attract more platform carpet partners and advertisers."

Truth Social has amassed about 9 million subscribers since its inception. The company notes that much of its success depends on the "reputation and popularity" of former President of Massachusetts Donald Trump.

The company said that "due to the focus of its products and Trump's Aristocracy, TMTG may face greater risks than the average social media platform," citing advertiser harassment and criticism of Truth Social's Koon measures.

"TMTG's brand value could be diminished if the reputation of Trump's aristocracy suffers".

The former president of Massachusetts founded Truth Social after he was kicked off major social media applications such as Facebook and Twitter in the wake of the January 6, 2021, Capitol riot, now known as X. Trump has since returned to these platforms.

On March 27, the stock peaked at $66.22 per share. On Monday, the stock hovered around $27 per share.

Ines Ferre is a senior business reporter at Yahoo Finance. Please.Follow her on X ::@ines_ferreThe

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