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Trump’s social media shares rose 16%, still down 67% from their $80 peak

Shares of Trump Media & Technology Group Corp. rose 16% on Wednesday, recouping a slice of the billions in market value lost in the three weeks since it debuted as a public company.

Former President Donald Trump’s media company closed at $26.40, up from Tuesday’s close of $22.84, on its best day debuting after a merger with Digital World Acquisition Corp. The rebound came as More than 13 million shares changed hands, while warrants tied to the company rose 30% to $11.45.

The swings extend the trend of companies using special purpose acquisition companies going public, with a growing number of so-called de-SPACs seeing red-hot starts quickly turn into downward spirals. Even with Wednesday’s rebound, the stock has lost about $5.4 billion from last month’s peak, with the value of Trump’s position falling to $2.1 billion.

As part of the structure of the deal, Trump Media insiders – including the former president – ​​are prohibited from selling shares until September. However, the board could waive sales restrictions that would open the door for many of the largest holders to cash out once the request is deemed effective by U.S. regulators.

On Tuesday, Trump Media said it has finished the research phase of its new live TV streaming platform. The underlying operations have struggled since launch, with Trump Media losing more than $50 million last year while generating just $4.1 million in revenue, according to regulatory filings.

With shares posting a 51% gain this year, the stock’s volatility has made trading difficult for Wall Street professionals. It’s among the most expensive short positions in the market, with funding fees topping 700% earlier this month, and options underlying the shares that have prompted the likes of former “Bond King” Bill Gross to choose to sell the expensive derivatives instead of making a direct bet on the price. action.

Trump is facing four criminal cases as he campaigns to return to the White House. The first criminal trial began Monday in Manhattan, where he is accused of falsifying business records to hide a hush-money payment to a porn star before the 2016 election. He described the case as an outrage and a persecution.

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