Former U.S. President Donald Trump is set to receive 36 million shares of Trump Media & Technology Group (DJT) stock, a stake that’s worth $1.25 billion U.S.
The stock award is part of an “earnout bonus” that’s to be paid to Trump for the shares achieving certain metrics, according to media reports.
Trump Media went public in late March of this year through a special purpose acquisition company (SPAC) deal and the shares quickly collapsed.
The stock of Trump Media, which owns the Truth Social app that is based on X, has declined 46% since March 27 of this year.
The company is struggling financially, having recently reported a 2023 net loss of $58 million U.S. and just $4.1 million U.S. in revenue.
However, the current share price of $35.50 U.S. is more than twice the $17.50 U.S. minimum that the stock has to trade at for Donald Trump to receive the earnout bonus.
The 36 million additional shares that Trump receives today (April 23) will be added to the 78.75 million shares he already owns as the company’s majority stockholder.
In all, Donald Trump’s stake in the media company that bares his name will be worth more than $4 billion U.S. based on the current share price.
There is media speculation that Donald Trump will sell his stake in the media company and use the proceeds to pay his legal bills and to help fund his renewed bid for the presidency.
However, the shares that Donald Trump owns in Trump Media are subject to a lock-up period that prevents him from selling them during the first six months following the company going public.
Donald Trump is currently in a New York City courtroom, listening to opening statements in a criminal hush money trial that’s been brought against him.
