The stock price of Trump Media & Technology Group dropped more than 18% Monday after the business filed to register potentially tens of millions of additional shares. This brings the total decline since the company debuted on the stock market last month to around 60%.
The 21.5 million shares would more than 15% more stock to shares currently available to the public, significantly devaluing existing stockholder’s stakes in the company. The filing includes shares that are tied to warrants, which gives the owner the right to buy stock shares at a set price.
“The belief is that they’re going to exchange the warrant for a share of stock and then immediately sell that stock,” said John Rekenthaler, vice president of research at Morningstar.
Additionally, the business aims to register more than 146 million shares held by some for resale.
At its highest, Donald Trump’s stake in Trump Media & Technology Group was valued around $5.2 billion. As of Monday, however, it’s worth about $2.3 million, dropping the former president’s net work by about $400 million.
