Donald Trump recently experienced a significant increase in his net worth, with Bloomberg estimating it at around $6.5 billion. This surge was due to a merger between his social media company, Trump Media & Technology Group, and a shell company, Digital World Acquisition Corp., resulting in a spike in the value of Trump’s stock. Trump owns nearly 80 million shares, representing roughly 58% of Trump Media, which operates his social media platform Truth Social. With DWAC’s share price reaching $49.95, Trump’s stock was valued at $4 billion on paper. The newly merged social media company is set to begin trading under the ticker symbol DJT.
In the midst of this financial boon, Trump faced a significant legal challenge as well. A New York appeals court reduced the bond required to prevent him from immediately paying a $454 million civil fraud penalty from over $550 million to $175 million. This ruling provided Trump with some relief, as he claimed to have the cash necessary to cover this reduced bond amount. As a result of the media merger and the adjusted bond, Trump, at 77 years old, found himself included in the Bloomberg Billionaires Index for the first time in his life, indicating a significant increase in his overall wealth. However, with restrictions preventing him from selling his DWAC shares for six months and the stock’s volatile history, the future stability of his newfound wealth remains uncertain.
Despite Trump’s financial gains, his businesses have reported operating losses for years. Trump Media, for instance, recorded less than $3.5 million in revenue in the first nine months of 2023, along with a net loss of $49 million during the same period. MSNBC’s Stephanie Ruhle characterized Trump’s media company as a meme stock heavily reliant on its founder. Bloomberg’s estimate of Trump’s net worth was derived from a combination of ethics disclosures mandated for presidential candidates, public filings related to key real estate holdings, and staff reporting. While Trump’s wealth currently appears to be at an all-time high, questions linger regarding its sustainability in the long run given the challenges faced by his businesses and the inherent risks associated with his stock holdings.
