Donald Trump increases stake in Truth Social’s parent company to nearly 65%

By:
on May 1, 2024
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  • According to a recent filing Trump's stake now stands at nearly 65%.
  • The increase in Trump’s stake coincides with a reported $1.3 billion stock bonus from TMTG.
  • This development reflects the heightened trading activity surrounding TMTG stocks.

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Donald Trump has significantly increased his ownership in Trump Media & Technology Group (TMTG), the operator of his social media app, Truth Social.

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According to a recent filing, his stake now stands at nearly 65%, following the acquisition of an additional 36 million shares.

Trump earlier held 57.6% in the company

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This move increases Trump’s holdings from 57.6% in March to a substantial majority.

The boost in ownership comes amidst a notable surge in the company’s stock, which has climbed over 50% to $49.93 in just the past five sessions.

Despite this sharp increase, the stock remains approximately 25% below its peak closing price on March 27.

How did the markets react?

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The increase in Trump’s stake coincides with a reported $1.3 billion stock bonus from TMTG, equal to about half of his majority stake, spurred by the rapid rally in the company’s shares.

This development reflects the heightened trading activity surrounding TMTG stocks, which have seen dramatic fluctuations since the company’s debut on the Nasdaq last month.

Context of the stock’s performance

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TMTG listed on the Nasdaq through a merger with a special purpose acquisition company (SPAC), attracting significant interest from Trump supporters and investors eager to capitalize on the fluctuating market.

The exuberant trading patterns highlight the speculative nature often associated with SPAC mergers, particularly those involving high-profile figures such as the former president.

This strategic increase in stake by Trump solidifies his control over TMTG and underscores his ongoing influence in both political and business realms, especially as he continues his role as a prominent figure within the Republican party and as a presidential candidate.

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