April 3, 2024

After Trump Media says it has $200 million cash and no debt, shares rise

Trump Media announced on Tuesday that it does not have any debt and has more than $200 million in cash on hand, which caused the company's stock to surge further.

On Tuesday, shares of Trump Media & Technology Group, which are traded under the ticker symbol DJT, increased by around six percent, partially correcting the loss of 21 percent that occurred early on Monday.

The stock has increased by 198 percent so far this year, as Breitbart News reported.

The announcement from the company...

“We are excited to be operating as a public company and to have secured access to capital markets.

"Closing out the 2023 financials related to the merger, Truth Social today has no debt and over $200 million in the bank, opening numerous possibilities for expanding and enhancing our platform.

"We intend to take full advantage of these opportunities to make Truth Social the quintessential free-speech platform for the American people,” Chief Executive Devin Nunes said.

Additionally, the fact that Donald Trump posted a bond in the amount of $175 million in a civil fraud lawsuit without selling or pledging his shares is likely to have provided investors with a sense of relief. Trump owns a significant interest in the parent company of Truth Social, coming in close to 60%.

Case update ...

Donald Trump will be able to appeal the civil ruling that was handed down against him, and the bond will prevent officials from the state of New York from collecting his assets in order to settle the penalty.

Despite the fact that the market capitalization of TMTG, which is currently valued at $7 billion, has caused some investors and critics of Trump to raise their eyebrows, there is a lengthy history of young technological startups that have been valued at high levels despite the fact that they have been losing money.

Although Instagram had not yet generated any money, Facebook paid a total of one billion dollars in cash and shares to acquire the company.

The corporation lost approximately fifty million dollars' worth of convertible notes that had been issued to fund its operations ever since Truth Social was first introduced in 2021. This was done in connection with the SPAC merger that the company underwent.

As a result, the company is now debt-free and has cash reserves of two hundred million dollars, according to the company.

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