Mark Ruschini, chief investment strategist at Janney Montgomery Scott, weighs in on Trump Media’s plans to begin trading with DJT to start this week as Bitcoin surges.
Shares of former President Donald Trump’s social media company soared on the first day of trading on the Nasdaq market Tuesday morning.
Trump Media & Technology Group stock rose about 50% at the opening bell, but paused due to volatility.
| ticker | safety | last | change | change % |
|---|---|---|---|---|
| DJT | Trump Media & Technology Group Corporation | 69.36 | +19.41 | +38.86% |
The company is the parent company of social media app Truth Social.
Trump Media & Technology Group went public through a merger with special purpose acquisition company Digital World Acquisition Corporation (DWAC), which approved the merger last week.
Trump’s stock price rises ahead of IPO; appeals court wins civil fraud claim
Trump Media stock soared on its stock market debut. (Photo by Sean Rayford/Getty Images/Getty Images)
Trump owns about 80 million shares of the company, which would give him about 58% ownership in the new entity. The stock was initially valued at about $3.3 billion, but rose to nearly $4 billion before his stock market debut.
These assets could fund the former president’s efforts to fight costly legal battles in civil and criminal courts, but Mr. (IPO).
Kevin O’Leary warns that New York Trump fraud scandal is ‘related to financial markets’ around the world
Former President Donald Trump won an appeals court victory that reduced the bond required to appeal a civil fraud judgment from $454 million to $175 million. (James Devaney/GC Images/Getty Images)
Major shareholders of an IPO are often subject to restrictions that require them to hold their shares for at least six months as a means of protecting shareholders who purchased their shares after the IPO from the unexpected volatility of unexpectedly large sales of shares. there is. Such restrictions also apply to other arrangements, such as taking out a loan against the value of shares.
The company’s board could waive those restrictions, allowing Mr. Trump to sell his shares sooner than six months later. But Monday’s ruling by the New York Court of Appeals in Trump’s civil fraud case may have negated the need for such an arrangement. When Trump appealed the underlying judgment, the required bond was reduced from the full judgment against him of $454 million to $175 million.
Social media app Truth Social is a subsidiary of Trump Media & Technology Group. (Photo by Anna Barclay/Getty Images/Getty Images)
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The former president said the small amount could be covered by “either bonds, equivalent securities or cash.”
This comes after his lawyers said they were unable to secure bail to cover his $454 million judgment, raising the possibility that New York state could move to seize his assets. .
