Trump Media & Technology Group set to debut on Nasdaq trading platform

Trump Media & Technology Group, the company behind the social networking platform Truth Social, is poised to make its debut on the Nasdaq stock market on March 26, marking a significant milestone in the digital realm.

Following a decisive vote on Friday by shareholders of Digital World Acquisition Corp., a publicly traded entity, the merger between Digital World and Trump's media venture was greenlit.

However, the stock of Digital World experienced notable fluctuations in the wake of this development. Initially, the stock saw a decline of 13.7% immediately after the merger's approval, only to rebound impressively with a 22% surge on Monday afternoon, reaching $45,40.

Former President Donald Trump stands to hold a substantial stake in the newly combined entity, with ownership of nearly 79 million shares. Based on Digital World's closing stock price of $36.94 on Friday, the value of Trump's stake could potentially approach $3 billion.

Despite the significant investment, Trump's ability to liquidate his holdings in the Palm Beach, Florida-based company will be restricted initially, subject to a "lock-up" provision barring insiders from selling newly issued shares for six months unless the company's board makes modifications.

Truth Social, which was launched in Feb. 2022, emerged as a response to Trump's ban from major social platforms such as Facebook and Twitter following the Jan. 6 U.S. Capitol attack.

Despite being reinstated on these platforms, Trump has maintained his allegiance to Truth Social, even taking to the platform on Friday to express his endorsement with a simple yet resolute message "I love Truth Social."

Despite its launch's fervor, Truth Social has yet to divulge specific user metrics. However, with the company now publicly traded, greater transparency is anticipated. According to estimates from research firm Similarweb, Truth Social boasted approximately 5 million active mobile and web users in February. While this figure pales in comparison to industry giants like TikTok and Facebook, it surpasses other alternative tech platforms such as the dormant Parler and the fledgling Gettr.

Financially, Trump Media & Technology Group faced a challenging trajectory in its early stages, reporting a loss of $49 million in the first nine months of the previous year.

With revenue amounting to just $3.4 million during the same period and substantial interest expenses totaling $37.7 million, the company navigated through turbulent financial waters.

Source: AP