Trump’s losses reach a staggering $3 billion on paper in less than two weeks

Disgraced former President Donald Trump has seen a staggering $3 billion in paper losses from his stock in Trump Media & Technology Group (DJT), since March 26, 2024, when share price soared with the company’s initial public offering.

Shares of Trump Media & Technology Group experienced such a significant decline, it erased all gains made since the company went public in March, when it hit a high near $80 per share, now falling to about $37 per share.

Without investing any of his own money in the venture, Trump was granted a 57 percent ownership stake in Trump Media, which he cannot sell or use as collateral until September.

The 2020 election loser saw his stake valued at about $2.9 billion on Monday, down from a peak of over $6 billion after its debut on its trading debut.

This decline in value is a red flag about broader concerns about the company’s integrity, financial stability, and the potential for political corruption.

However, given the company’s dismal financial performance, including a loss of over $58 million last year and generating only about as much revenue as a typical McDonald’s franchise ($4 million), Trump’s stake is likely to be worthless by that time.

What’s particularly alarming is that Trump invested no money in the company, raising questions about the motives behind his involvement and the fairness of his substantial ownership stake. This situation highlights the broader issue of political figures leveraging their influence for personal gain, even at the expense of investors and shareholders.

Furthermore, there are concerns about individuals within Trump Media benefiting from the company’s cash-losing operation.

Executives and board members have reportedly been granted significant stock packages and bonuses despite the company’s dire financial situation. This apparent enrichment of certain individuals adds to the perception of impropriety surrounding the company.

The former president alone owns 78.8 million shares but he can’t sell that stock anytime soon. While Trump Media has nearly 137 million shares outstanding, its free float — which measures the number of shares that are potentially available for trading — is just 40 million.

The fact that Trump Media is embroiled in legal disputes only adds to the skepticism surrounding its operations.

Lawsuits involving former executives and investors raise questions about the company’s management practices and the potential for further financial strain.

Overall, the situation at Trump Media & Technology Group paints a troubling picture of alleged political corruption, financial mismanagement, and ethical lapses.

As the company grapples with mounting losses and legal challenges, investors and stakeholders must carefully consider the implications of their involvement with a venture that appears to be mired in controversy and uncertainty.