(ConservativeJournal.org) – Donald Trump received a financial boon on April 23 when a rally in the stock for Truth Social resulted in a bonus being granted worth $1.3 billion. The award pushes Trump’s overall investment in the company, Trump Media & Technology Group (TMTG), to $4.1 billion.
Trump has agreed to hold all the shares until September of this year, and the bonus raises his overall personal fortune to $4.7 billion, according to Forbes. The money will undoubtedly help fund Trump’s legal fees and any fines that he may have to pay out after exhausting the appeals processes in all his cases.
The bonus is the result of massive interest in TMTG after it merged with a special purpose acquisition company (SPAC). Shares have been bought by Trump supporters or folks betting on an increase in stock value over time. Trump is awarded the funds once the share price stays above $17.50 for 20 days of trading following the March 26 listing; that occurred on Tuesday, April 23.
While the company lost $4.1 million in 2023 due to investment and development, the current total value is now hovering around $5 billion which makes up for that loss roughly 1,200 times. The company has the highest valuation multiple out of all companies with similar valuations.
The irony here is that TMTG warned investors in its regulatory filings of the possibility of losing funds or even staying in business. A TMTG spokesman refused to comment on the award to Trump specifically, saying instead that Trump Media was fulfilling all obligations and moving forward with the merger and developing its business. He added that the company has no debt and over $200 million in operating funds.
Most executives don’t get bonuses of this size due to a lack of the company’s stock skyrocketing in a short period of time like TMTG has. Initially, the stock price would have to have been north of $30 for 20 days, but they eventually negotiated and amended the deal such that the threshold was $17.50.
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