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Trump Media & Technology Group stock slumped 14% on Thursday afternoon, as the company’s shares continue on their downward trajectory.
Shares of Trump Media, the company behind former President Donald Trump’s social media site Truth Social, traded at around $26.92 in midday trading, as they approach the stock’s all-time low of $22.55. The stock has fallen roughly 50% since Trump was convicted on 34 felony counts in his New York hush money trail.
The former president is a majority shareholder of Trump Media, holding almost 65% of outstanding common stock in the company as of June 10.
Trump Media stock, which trades on the Nasdaq under the ticker DJT, plunged almost 10% on Tuesday after the Securities and Exchange Commission approved the company’s request to register additional shares — including allowing its early investors holding the company’s derivatives to convert them into shares. While Trump Media said the exercise of all warrants could give it a $247 million boost, it also has the potential to dilute the stock.
Markets were closed Wednesday for the Juneteenth holiday.
Trump Media said on April 15 that it was registering the resale of up to almost 21.5 million new shares of common stock issuable upon the exercise of warrants, up to about 146 million shares of common stock, and up to about 4 million warrants to purchase common stock.
Last Monday, Trump Media filed a registration statement with the SEC that included a re-audit of the company’s financial statements spanning from Dec. 31, 2023, and Dec. 31, 2022. The audits were carried out by Trump Media’s new accountant Semple, Marchal & Cooper (SMC), which replaced its former audit firm BF Borgers last month after the regulator permanently barred the company from serving as accountants.
The audited finances confirmed that Trump Media suffered a net loss of $58.2 million during the 12 months ended Dec. 31.