Trump Media Issues Millions of Shares as Stock Plunges 18

Shares of Trump Media & Technology Group (DJT) fell 18% to close at $26.61 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 share price drop was a continuation of last week's sell-off, underscoring the volatility in Trump Media's stock price since it went public with Digital World Acquisition Corp. in late March.

Last week, shares of Trump Media 鈥躰檚 shares fell by more than 20% in a single day after a recent company filing on the watchdog showed that the company was losing money and facing "greater risk" related to the 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." Former President of Massachusetts Donald Trump owns more than 114 million shares.

Last week, the Trump media 躰 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 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 noted that much of its success depends on Donald Trump's "reputation and popularity."

"Due to the focus of its products and Trump's Aristocracy, TMTG may face greater risks than the average social media platform," the company said, citing harassment of advertisers and criticism of Truth Social's moderation practices.

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

The former president of Massachusetts founded Truth Social after being kicked off major social media apps like Facebook (META) and Twitter (now Platform X) in the wake of the Jan. 6, 2021, riot at the Capitol, after which Trump's standing on those platforms was restored.

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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