Former President Donald Trump’s social media app, Truth Social, will commence trading on the Nasdaq Exchange, potentially causing over $3 billion in losses for the ex-president. The company behind Truth Social, Digital World Acquisition Corp (DWAC), a listed shell company, is gearing up to become a public company after completing its merger with Trump’s company.
Trading Under DJT Symbol
Under the stock symbol DJT, short for Donald J. Trump, Trump Media & Technology Group will trade. According to current market prices, Trump’s ownership position in the combined company, which would amount to at least 58%, might be worth billions of dollars.
Legal Troubles Amid Merger
This development comes as Trump faces multiple legal challenges. Just the day before, a New York appeals court reduced the bond Trump must post in his civil fraud case by almost half a million dollars to $175 million, giving him an additional 10 days to post it.
Restrictions on Selling Shares
Under his current agreement, Trump cannot sell his shares in Truth Social for another six months. However, he may seek to renegotiate his deal or pledge his stock holdings as collateral for a loan.
Trump’s Optimism Despite Financial Struggles
In a news conference on Monday, Trump expressed optimism about Truth Social’s performance despite its poor financial health. “Truth Social is doing very well,” he said. “It’s hot as a pistol and doing great.”
Financial Challenges for Truth Social
According to filings, Truth Social reported revenue of just over $3 million in the first nine months of last year, with losses totaling almost $50 million during that period.
