The US presidential candidate is relying on the social network Truth Social to raise money for his election campaign, but this plan is now in jeopardy. Donald Trump’s supporters knew they were in for a wild ride when they got involved. Truth Social’s parent company, Trump Media & Technology Group (TMTG), is listed on the Nasdaq exchange under the symbol DJT, with a business model centered around the 77-year-old former president.
The success of Truth Social is closely tied to Trump’s performance and the outcome of the upcoming presidential election. The DJT share price has been seen as a gauge of his campaign’s progress, but a recent crash in the stock has created uncertainty. Despite a strong start, the share price plummeted due in part to new legal issues faced by Trump.
TMTG’s valuation has fluctuated significantly, impacting Trump’s personal wealth as he holds a majority stake in the company. The launch of a new streaming service is expected to help generate revenue, but financial challenges remain. Trump’s suspension from Twitter led to the creation of Truth Social as an alternative platform to reach his followers.
The recent drop in TMTG’s share price was sparked by plans to sell millions of shares, reducing the company’s overall value. Trump’s decisions on when to sell his shares could have lasting effects on the company’s financial stability. As both Trump and TMTG face financial pressures, the future of Truth Social hangs in the balance.
The potential returns from selling shares is a key consideration for Trump, especially as he navigates ongoing legal battles that are draining his resources. With only seven months until the election, Trump’s campaign coffers are not as full as they need to be. The loyalty of Trump’s supporters and retail investors will play a significant role in determining the future of Truth Social and its financial viability moving forward.