(DCWatchdog.com) – The shares of Trump Media have experienced a significant decline — dropping 8% yesterday alone — yet that hasn’t prevented former President Donald Trump from securing an earnout bonus that had been widely anticipated by market watchers.
The company, designated by its stock ticker DJT, saw its closing price settle at $32.57 per share on Tuesday, CNBC reports.
This figure represents a notable depreciation, as it is approximately 50% less than its initial price last month, which exceeded $70, the report notes.
The conditions of the earnout arrangement stipulated that Trump would be entitled to an additional allotment of 36 million shares if the stock maintained a closing price above the $17.50 threshold.
This threshold was surpassed, and as a result, the value of these shares is estimated to be around $1.15 billion.
The earnout was specifically conditional, requiring that the stock price meet this benchmark for 20 trading days within a 30-day trading period.
Donald Trump, who retains the majority of shares in DJT, had a pre-existing ownership of 78.75 million shares.
With the addition of the earnout bonus, his total stake in the company is projected to elevate to a valuation of approximately $3.7 billion.
Despite multiple attempts to gather commentary on the situation, a spokesperson for Trump Media didn’t respond to inquiries from CNBC regarding the details of the earnout.
Further adding to the complexities of the week, Trump Media issued a public statement on Tuesday.
This announcement addressed shareholders directly, outlining proactive measures they could adopt to deter the lending of their shares for the purpose of short selling.
This follows a cautionary communication sent to the CEO of Nasdaq by Trump Media on the preceding Friday, where concerns were raised about “potential market manipulation” through “naked” short selling of the company’s shares.
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