Donald Trump is set to receive an additional 36 million shares of Trump Media on Tuesday as an “earnout” bonus, potentially exceeding $1 billion in value based on Monday’s closing price.
For Trump to secure the earnout, Trump Media, the parent company of his Truth Social app, must trade above $17.50 per share by Tuesday’s closing bell.
With Trump Media trading double that amount on Monday, it seems highly likely that Trump will qualify for the share infusion, significantly boosting his net worth.
Currently, Trump holds 78.75 million shares, making him the majority shareholder of the company.
Former executives of Trump Media have recently filed to lift their six-month share lockup.
Trump Media has experienced volatility since its public debut last month, reaching as high as $80 a share briefly, giving the company a market capitalization of over $9 billion.
This valuation is notable considering Truth Social, its main revenue source, reported a net loss of $58 million in 2023.
Despite this, Trump Media has provided substantial financial gains for Trump, especially amidst increasing legal fees and judgments against him.
Upon the addition of the earnout shares to his existing stock, Trump’s total stake in Trump Media is expected to reach $4 billion on paper by Tuesday.
However, he cannot liquidate these assets immediately, as he is legally required to wait at least six months after Trump Media’s IPO before selling any shares.
