Trump Media shares plunge after company files to issue additional DJT stock

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19. Trump stock tanks after announcing massive share sale

Business / Investing

Trump stock tanks after announcing massive share sale

By Krystal Hur and David Goldman, CNN
4 minute read
Updated 12:48 PM EDT, Mon April 15, 2024

New York (CNN) — Trump Media & Technology Group’s stock is tumbling again after the company announced a potentially massive new influx of shares. The struggling company is rapidly losing money, and a new stock offering could help it stay afloat.

But there’s a downside to going back to the market with more shares: The addition of 21.5 million shares for sale announced Monday would add more than 15% more stock to the publicly available shares of the Truth Social owner. That would substantially devalue existing shareholders’ stakes — including that of former President Donald Trump. And it means that millions of shares could be sold off.

This filing seeks to register all shares related to the merger that took Trump Media public, including those that are tied to warrants. Warrants give the holder the right to buy shares of a company’s stock at a set price.

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