Former President Donald Trump is poised to receive an additional 36 million shares of Trump Media on Tuesday — an “earnout” bonus worth more than $1.25 billion, at Monday’s price.
Trump Media, which owns the Truth Social app, closed trading Monday at $35.50 per share, down 2.42%, and about half the price that the DJT ticker began public trading at in late March.
But that closing price is still twice the $17.50 benchmark minimum share price that Trump Media has to hit by the close of trading Tuesday for the former president to become eligible for the extra so-called earnout shares.
That earnout is contingent on the benchmark being hit for 20 trading days within a 30-trading-day period, beginning March 25. Tuesday is the 20th day — and it is very unlikely that DJT will fall below the benchmark price by the close of trading then.
The 36 million additional shares Trump seems set to get would be added to the 78.75 million shares he already owns, as the company’s majority shareholder.
When the earnout shares are added to his existing stock, Trump’s total stake in Trump Media would be worth more than $4 billion on paper, at $35 a share.
Trump Media has the power to issue a total of 40 million earnout shares, as part of the merger deal that combined it with a publicly traded shell company, Digital World Acquisition Corp.
