Trump's net worth sinks $1 billion as Truth Social shares go into free fall: reports
Former President Donald Trump's net worth dropped a staggering $1 billion Monday after news of Truth Social's reported financial losses sent its stock into free-fall, according to multiple reports.
Axios quipped, "This was a MAGA meme stock meeting financial reality."
Trump Media & Technology Group's disclosure of a $58 million net loss in 2023, with just $4.1 million in revenue, mean that Trump's stake in the company fell $4.89 billion to $3.84 billion, according to the report.
As Axios notes, a lockup agreement currently bars Trump from selling shares for at least six months without special dispensation from the board of directors.
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Trump Media’s accountants sounded warnings that the losses “raise substantial doubt about its ability to continue as a going concern," according to CNN.
The bad news comes days after Trump's TMTG merged its social media platform with Digital World Acquisition Corporation and started trading publicly on the Nasdaq using the symbol DJT which happen to be Trump's initials: Donald John Trump.
Michael Ohlrogge, an associate professor at NYU School of Law, told CNN the $300 million cash infusion could give the company a “decent bit more runway.”
“Although it won’t take that long to burn through the cash it raised…if they keep losing it at the rate they are,” Ohlrogge said.
The company's value is still north of nearly 200% so far this year, CNN confirmed.
Trump Media went public as its namesake faces multiple financial burdens that include mounting legal fees in his four criminal court cases, multi-million-dollar rulings in his civil court cases, the expenses of mounting a presidential campaign.
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The former president has pleaded not guilty in the criminal cases, taken steps to appeal the civil rulings, and continues to find creative ways to raise cash that include hawking Bibles and golden sneakers.