Former President Donald Trump is set to receive an earnout bonus of 36 million shares of Trump Media, valued at over $1.25 billion, based on Monday's share price. The share price of Trump Media, which owns the Truth Social app, was trading at around $35 per share on Monday, meeting the $17.50 benchmark minimum share price required for Trump to be eligible for the earnout shares.
This earnout is contingent on the share price maintaining the benchmark for 20 trading days within a 30 trading-day period, which Tuesday marks the 20th day. Trump Media's share price was down about 1.8% as of midday Monday, but it is unlikely to fall below the benchmark price by the end of the day.
If the earnout shares are issued, Trump's total stake in Trump Media would be worth over $4 billion on paper. The company has the ability to issue a total of 40 million earnout shares as part of the merger deal that combined it with Digital World Acquisition Corp.
Trump Media began public trading under the DJT ticker in March, reaching a high market capitalization of over $9 billion despite reporting a net loss in 2023. Since then, the share price has fallen significantly, erasing billions in market capitalization for the company.
It is unclear how the issuance of the earnout shares to Trump will impact the share price of Trump Media. Trump's shares are subject to a lock-up provision preventing him from selling them for six months following the merger. The company has not indicated any plans to amend this provision.
A company spokeswoman stated that Trump Media is fulfilling its obligations related to the merger and moving forward with its business plan. The future of Trump Media and the potential impact of Trump's earnout shares remain uncertain.