Donald Trump will receive $1.25 billion worth of Trump Media stock in DJT earnings bonuses

Anna Buckley |

Former President Donald Trump is expected to receive an additional 36 million shares Trump media Tuesday – The “lucrative” bonus was worth more than $1.25 billion at Monday’s prices

Its own Trump media stock, Satya Samaj, was trading at about $35 a share on Monday afternoon, about half the price it paid per share when it went public in March.

But that price is double the benchmark minimum share price of $17.50, a ticker that must rise by the end of Tuesday to qualify for DJT Trump’s additional so-called benefits. Income stocks.

This gain is dependent on the benchmark price moving in 20 out of 30 trading days starting from March 25. Tuesday is Day 20, and there is a slim chance that DJT will drop below the benchmark price by the end of the day.

Trump media shares were down about 1.8% as of 12:17 pm ET.

Trump will acquire an additional 36 million shares from the 78.75 million shares he already owns as the company’s majority shareholder.

If the earnings shares are added to his existing stake, Trump’s total stake in Trump Media would have a book value of $4 billion, or $35 per share.

Trump Media has the right to issue a total of 40 million earnings shares as part of a merger agreement with publicly traded shell company Digital World Acquisition Corporation.

“For the full issuance of Earnout Shares, President Donald J. Trump will receive 36,000,000 earned shares,” the company said in a securities filing as part of some, if not all, of the incentive plans. The remaining shares will be issued to Trump media executives.

Trump heard opening statements Monday in a New York City courtroom in his criminal hush money trial. The court resumed proceedings against the Republican presidential candidate on Tuesday.

The combined company, whose full name is Trump Media and Technology Group Corp., began trading publicly on March 26 under the stock symbol DJT, at $70.90 per share.

The price rose to a high of nearly $80 that day, giving the company a market value that briefly exceeded $9 billion. Despite reporting a net loss of $58 million in 2023, revenue was only $4.1 million.

But since then, Trump Media’s share price has plummeted. By the close of trading on April 15, the stock had fallen nearly 68% from its opening price.

The share price rose last week. But as of Monday, Trump Media’s stock price was still about 50% below its list price, wiping billions of dollars off the company’s market value.

The stock last traded at a benchmark low of $17.50 in January, when the SEC approved the planned merger of DWAC and Trump Media.

It remains to be seen whether issuing revenue shares to Trump will affect Trump Media’s stock price.

Any shares owned by Trump are subject to a lock-up provision that prohibits him from selling them for six months after the merger deadline.

Although the Trump Media Board could amend the provision, so far, no action has been taken.

CNBC asked a company spokesperson about the expected trigger for Trump dividend stocks.

He responded: “Trump Media has more than $200 million in the bank, zero debt, is meeting all obligations related to the merger and is rapidly advancing its business plan.”