Trump Just Got MASSIVE Financial Win!

OPINION:  This article contains commentary which may reflect the author’s opinion

The former president Donald Trump’s social media company, Truth Social, was formed, and shareholders of the shell corporation that controls it have voted for the company to go public, giving the Republican up to $4 billion in cash at a pivotal point in his continuing criminal and legal prosecutions.

Truth Social would be listed on the NASDAQ Stock Exchange with the ticket “DJT” following a vote by the owners of the Trump Media & Technology Group to merge with Digital World Acquisition Corp, a special purpose acquisition company, or SPAC.

President Trump may acquire between $3.5 and $4 billion in new net assets if the new entity’s estimates hold true, according to CBS News. But translating the value on paper into actual dollars could be difficult.

Before a six-month lockup period, Trump would have to sign a waiver allowing for the liquidation of his stock. By doing this, he would be able to post the $454 million bond required to pay off his real estate judgment in New York.

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Lockup clauses are designed to stop business owners from selling their stocks hastily in an attempt to profit quickly, which would leave normal traders holding the bag in a volatile stock market.

If the former president is unable to provide the required amount, New York Attorney General Letitia James has threatened to start seizing Trump’s assets by Monday. According to his attorneys, lenders are refusing to provide for him.

Even though Trump might currently have $500 million in cash on hand, some think he might need to quadruple that sum in order to cover the verdict while it’s being reviewed by an appeals court.

Following his 2021 suspension from X, then known as Twitter, by its previous owners, President Trump created Truth Social. The comments regarding the January 6, 2021 breach that Twitter determined to be untrue were the reason for the ban.

A public offering raises the chance that Trump’s fans could increase the stock price on its opening day, further inflating the personal proceeds Trump would receive, since sympathy for him is high due to his current trials.

President Trump’s financial woes extend beyond his New York case. In 2023, he received more money than his different political action committees—which pay his legal bills—raised.

He has paid more than $50 million so far, but he still owes his lawyers $8.5 million.

But Truth Social is turning out to be a successful venture for the 45th president. According to regulatory filings, the social media startup earned $3.7 million in sales during the first quarter of 2023. Even though the website is still losing money, a sale might persuade new sponsors who aren’t happy with X to give the president’s platform a shot.

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