Donald Trump is Set to Get 36 Million Shares of Trump Media, Earnout of over $1 Billion

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.

Donald Trump (Credits: Victor J. Blue/Pool via REUTERS)

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.

Trump Media (Credits: Rafael Henrique/SOPA Images/LightRocket via Getty Images)

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.

Josh Alba
Josh Alba
Josh Alba stands at the forefront of contemporary business journalism, his words weaving narratives that illuminate the intricate workings of the corporate world. With a keen eye for detail and a penchant for uncovering the underlying stories behind financial trends, Josh has established himself as a trusted authority in business writing. Drawing from his wealth of experience and relentless pursuit of truth, Josh delivers insights that resonate with readers across industries.
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