Donald Trump’s media company made its public debut under this name Trump Media & Technology Group Cor. DJT this week following its merger with the blank check company Digital World Acquisition Corp. The listing will have much bigger implications for Trump’s presidential campaign, a report said Friday.
Increased Net Worth for Trump: TMTG began trading on the Nasdaq on Tuesday under the symbol DJT. After opening at $70.90, the stock traded in a range of $57.25 to $79.38 before closing at $57.99. Since its listing the stock has gained 25%.
TMTG is parent of Social Truth media platform, which Trump has used frequently since its launch in February 2022. It served as a means for the former president to communicate his messages to the public after he was banned from most social media platforms following the January insurrection 2020. Since then, Trump has been reinstated on many platforms.
Trump’s media company now boasts a market capitalization of more than $7 billion, based on the stock’s closing price on Thursday.
Despite the company’s very limited revenue and history of losses, TMTG has the potential not only to enrich Trump but also boost his chances in November’s presidential election, a Barron’s report says. The surge in TMTG shares boosted the former president’s net worth in a matter of days, he added.
“There is no precedent for a presidential candidate to have gained so much wealth, so quickly, and in this way months before an election,” the report said.
While he cannot profit from selling the company’s shares in the short term due to insider trading restrictions, he will be free to sell shares before the November election.
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Electoral impact: Since Trump has a significant stake in TMTG, individuals, companies and governments now have a “direct path” to influence the former president’s profits, according to Barron’s.
Economist Peter Schiff, who is a Trump supporter, said Wednesday in a post on X, formerly Twitter, that “Instead of donating to the Trump campaign, supporters should simply [buy] $DJT. Then #Trump will be able to borrow his own appreciated stocks tax-free to self-finance his presidential campaign.
“Trump will win in a landslide and all those #MAGA supporters who bought DJT stock will be rich,” he said.
While campaign finance laws place restrictions on the money individuals can donate to an individual candidate, there is no limit on the TMTG shares Trump supporters can buy, the economist said.
“Trump owns nearly 60% of DJT. So wealthy Trump supporters can get around these donation limits by buying DJT,” he said.
Barron’s report said the listing changes the composition of Trump’s wealth from largely illiquid real estate-related assets to stock holdings that can be monetized relatively quickly once lockdown restrictions are lifted. The former president’s 30% stake in a Manhattan office building at 1290 Sixth Avenue is worth about $300 million, Barron’s estimates. But realizing the value would require the consent of the building’s majority owner, he said.
Trump’s newfound wealth could be a political and financial asset, the report says. Ron Bonjean, co-founder of the public relations firm ROKK Solutions and longtime Republican communications strategist said: “He will definitely use this to reflect his power and his might, and that’s thanks to the supporters who have helped him… This can make a difference even on election day,” he added.
According to Benzinga Pro data, TMTG shares closed Thursday’s session down 6.43% at $61.96.
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