Trump's Truth Social Shares Plummet Amidst Plans for Share Issuance and Legal Proceedings

Trump's Truth Social shares plummet amid plans for share issuance and legal proceedings. Follow updates on the platform's challenges and market respon

Donald Trump's social media venture, Truth Social, has seen a significant decline in its share value, dropping to its lowest level since January as the former president's hush-money criminal trial begins in New York.

 

The company, Trump Media, is reportedly considering issuing millions more shares, a move that would allow insiders, including Mr. Trump himself, to sell their holdings.

 

Since its formal stock exchange debut in March, Truth Social has experienced a notable downturn, with shares plummeting by 14% on Monday alone. This decline coincides with Mr. Trump's presence in the courtroom as the trial unfolds.

 

Truth Social made its debut on the Nasdaq stock exchange last month through a merger with Digital World Acquisition Corp, a shell company established in 2021 with the purpose of identifying and acquiring a company to take public.

 

While the merger initially drove the share price above $70, it has since seen a sharp decline, currently trading at less than $28 per share.

 

Despite the rocky start, the merger injected approximately $200 million into Truth Social and resulted in substantial paper wealth for Mr. Trump, who remains the majority shareholder in the company. However, the ongoing legal proceedings and the prospect of additional share issuance have contributed to a challenging environment for Truth Social in the stock market.