this post was submitted on 15 Apr 2024
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Trump Media & Technology Group’s stock is tumbling again after the company announced a massive new influx of shares. The struggling company is rapidly losing money, and a new stock offering could help it stay afloat.

But there’s a downside to going back to the market with new shares: A new public stock offering of 21.5 million shares announced Monday would add more than 15% more stock to the publicly available shares of the Truth Social owner. That would substantially devalue existing shareholders’ stakes — including that of former President Donald Trump.

Shares of TMTG (DJT) fell more than 15% Monday. The stock had rocketed higher in recent months in anticipation of merging a blank-check acquisition company with Trump’s media business. But it has lost more than 60% of its value from its peak on March 26, the day after the merger was completed and it started trading publicly as TMTG.

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[–] Blackmist@feddit.uk 8 points 7 months ago (2 children)
[–] Dark_Arc@social.packetloss.gg 6 points 7 months ago

That's kind of interesting, but I'm always wary of correlations

[–] OldWoodFrame@lemm.ee 1 points 7 months ago

Because it was a SPAC I think the stuff before this year is essentially unrelated.