Donald Trump has seen a significant increase in his net worth, now estimated at $7.3 billion, after shares of Trump Media & Technology Group (TMTG), the company behind the Truth Social platform, began trading on the Nasdaq. This marks a turnaround for Trump, whose assets had previously been declining in value, with liabilities exceeding $540 million from legal judgments. With nearly 79 million shares of TMTG, Trump’s largest asset, the former president is now ranked among the 400 richest people in the world, according to Forbes.
Despite his newfound wealth on paper, Trump is currently restricted from selling or using his shares as collateral due to a six-month lock-up agreement. The stock price of TMTG, trading under the ticker DJT, has experienced significant fluctuations since the announcement of its merger with a special purpose acquisition company in October 2021. While the stock soared in anticipation of the merger, its long-term performance remains uncertain. With fewer than 9 million users on Truth Social and financial losses exceeding revenue, the company faces tough competition in the social media space from established platforms like Facebook and Elon Musk’s X.
The future of Trump’s wealth hinges on the performance of TMTG’s stock over the next six months. If the stock maintains its high valuation, Trump may have the opportunity to cash out his shares for billions of dollars, potentially alleviating some of his legal and financial challenges. However, it is common for companies that go public through SPAC mergers to see a decline in their share prices post-listing. The success of Truth Social, which has been met with limited uptake and financial losses, remains a key factor in determining the long-term viability of TMTG and Trump’s financial prospects.
Investors have valued TMTG at nearly $10 billion, despite its modest revenue and user base, highlighting the market’s optimism for the future success of the company. Trump’s role in TMTG, and his association with Truth Social, has drawn significant interest and enthusiasm from shareholders, driving the stock price higher. The coming months will reveal whether TMTG can sustain its valuation and compete effectively in the social media landscape against industry giants like Facebook. Trump’s financial fortunes, tied to the performance of TMTG’s stock, will be closely watched as the company navigates its post-listing challenges.
