Donald Trump’s Paper Wealth Could Reach Over $1 Billion by End of Day Tuesday
Former President Donald Trump could potentially pocket over $1 billion in paper wealth by the end of the day on Tuesday, according to a Securities and Exchange Commission (SEC) filing last week. This is based on the performance of Trump Media & Technology Group (TMTG), the company behind Trump’s social media platform Truth Social, which went public on March 26.
The clock began ticking on a 30-day period on March 26, during which TMTG’s dollar volume-weighted average price (DVWAP) must be at least $12.50 for a minimum of 20 trading days. If this condition is met, Trump will earn 36 million earnout shares of TMTG, bringing his potential wealth to over $1 billion.
As of Friday’s closing price of $36.38 per share, the potential value of the earnout shares is $1.3 billion. Trump owned approximately 57.6% of the outstanding shares of TMTG when it debuted on the public markets, or 78.75 million shares. With a market capitalization of $4.97 billion at the end of last week, Trump Media closed out its first trading week with a high of $79.38 per share, giving the company a more than $8 billion market cap.
However, the stock began to nosedive over several weeks following disclosures of multi-million dollar losses from operations in 2023, the registered resale of substantially all of its outstanding securities, and the announcement of its own live TV streaming platform. As a result, Trump Media stock rebounded toward the end of last week and recovered more than $1 billion in market value.
It’s important to note that this potential wealth is purely paper wealth, as the earnout shares are contingent on TMTG’s performance and are not yet in Trump’s possession. Additionally, the stock market can be volatile, and the value of Trump’s stake in TMTG could fluctuate based on various factors such as economic conditions, industry trends, and investor sentiment.
Overall, the potential wealth that Donald Trump could pocket by the end of the day on Tuesday is a result of the performance of Trump Media & Technology Group, and the company’s success in meeting certain financial milestones. While the stock market can be unpredictable, Trump’s stake in TMTG has already shown significant growth since its debut on the public markets.