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donald trump is poised to be granted trump media stock worth 125 billion as part of the djt earnout bonus 694


Donald Trump is poised to be granted Trump Media stock worth $1.25 billion as part of the DJT earnout bonus


Michael Chen

April 23, 2024 - 19:30 pm


Earnout Bonus for Former President Trump:

Former President Donald Trump stands to receive an additional 36 million shares of Trump Media, valued at over $1.25 billion, as an earnout bonus after trading concludes on Tuesday.

Eligibility Criteria and Benchmark:

Trump Media, owner of the Truth Social app, allocated these earnout shares based on the company's stock meeting a minimum share price benchmark. The closing price must exceed $17.50 for 20 trading days within a 30-day period, starting March 25.

Potential Share Allocation:

If the benchmark is met, the 36 million earnout shares would be added to Trump's existing 78.75 million shares, making him the majority shareholder of Trump Media.

Financial Implications:

With the earnout shares, Trump's total stake in Trump Media would surpass $4 billion, assuming a share price of $35.

Earnout Share Issuance:

Trump Media has the authority to issue up to 40 million earnout shares as part of the merger deal with Digital World Acquisition Corp. The company indicated in a securities filing that any remaining shares might be distributed to its executive officers.

Legal Proceedings and Trading Dynamics:

Trump's potential receipt of the earnout shares coincides with his participation in a criminal trial related to hush money payments. Meanwhile, Trump Media's stock, trading under the DJT ticker, has experienced significant volatility since its debut.

Market Performance and Share Price Fluctuations:

Despite an initial surge in stock price following public trading, Trump Media's shares have declined substantially, resulting in substantial market capitalization losses for the company.

Lock-Up Provision and Future Implications:

Shares acquired by Trump are subject to a six-month lock-up period, preventing immediate sale. The potential issuance of earnout shares may influence Trump Media's share price, but the company has yet to amend its lock-up provision.

Company's Response:

Trump Media, with a robust financial position, affirmed its commitment to fulfilling merger obligations and advancing its business agenda, emphasizing its substantial cash reserves and absence of debt.