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Donald Trump's Truth Social Network Debuts with Wall Street Fanfare, Generating Over $5 Billion in Profits – QuiFinanza

Donald Trump's Truth Social Network Debuts with Wall Street Fanfare, Generating Over $5 Billion in Profits – QuiFinanza

Donald Trump Hits Nasdaq As Truth Debuts He is saved from asset confiscation due to a fraud conviction. The company that controls the social network, which Tycoon created after it was banned by other platforms, saw its shares rise +58% on its first day on Wall Street, before settling around +36%. This windfall translates into a value of about $10 billion for Trump Media & Technology Group, the company created from the Digital World Acquisition merger specifically to launch the new title on the stock exchange. Thanks to the ownership of about 60% of the social media company TMTG, the former US president has 5.5 billion shares in his pocket, which puts him in the Bloomberg ranking of the 500 richest men in the world and makes him breathe a sigh of relief. In order to pay the $175 million bail within a few days.


In fact, Trump got… Huge discount on the 464 million fine He will have to pay by the March 25 deadline, after being found guilty of fraud, conspiracy, issuing false financial statements and forged business documents, for fraudulently inflating the value of his assets. But after an appeal to the New York Court of Appeals, the judges reduced the bail to $175 million, to be paid within ten days, waiting for the trial to take its course (here we talked about the discount granted to Trump on super bail), while here is what he risked and what he is still risking. If convicted on appeal).

It is a less expensive number for the billionaire, especially in light of the success of the shares of TMTG, which owns the social media network Truth, which the former president launched in 2022 to compete with Twitter “X” at the time, also despite the fact that it was banned after accusations of incitement to attack the Capitol building. On January 6, 2021.

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Success on Wall Street

The launch of the new title “DJT” (Trump's initials) was made possible by Integration with DOAC (Digital World Acquisition Corp), a special purpose vehicle already listed on the stock exchange, that is, an investment vehicle that allows, through a merger, another company to enter the list without the need to carry out an initial public offering.

It's a surprising result to many insiders, and one that could be more a result of the enthusiasm of Donald Trump's supporters than a reasonable estimate of the underlying prospects for the business.

although there was It lost $49 million in the first nine months of last yearWith very little revenue and even fewer registered users on Truth, Trump Media shuffled the cards on Wall Street by giving Trump the opportunity to convince the insurance companies that denied him the loan to pay the bail (here we talked about the loan that the insurance companies denied Trump to pay the bail).

However, the former president cannot consider himself safe yet He still can't get his 78 million shares for six months Even if it manages to obtain a guarantee, TMTG, as a public company, will be under the scrutiny of US authorities and will also be exposed to potential shareholder lawsuits if there are communications deficiencies or misleading information.