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Trump's Truth Social Goes Public: A $3 Billion Boost Amid Legal Woes

Trump's Truth Social Goes Public: A $3 Billion Boost Amid Legal Woes

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In a major development for former President Donald Trump, his social media platform Truth Social began trading on the Nasdaq stock exchange under the ticker symbol "DJT" on Tuesday, March 26, 2024. The move comes after shareholders of the special purpose acquisition company (SPAC) Digital World Acquisition Corp. (DWAC) approved a merger with Trump Media & Technology Group (TMTG), the parent company of Truth Social.

The public debut of Trump's media venture has the potential to significantly boost his net worth, with his 79 million shares valued at around $3 billion based on DWAC's current stock price. However, the company faces numerous challenges, including financial struggles, a relatively small user base, and Trump's ongoing legal battles.

Truth Social's Rocky Financial Performance

Despite the hype surrounding its public listing, Truth Social has struggled financially since its launch in February 2022. The platform generated a mere $3.3 million in revenue in the first nine months of 2023 while accumulating tens of millions in losses. This lackluster performance raises questions about the company's ability to sustain its lofty valuation.

Key financial metrics for Truth Social:

  • Revenue (first 9 months of 2023): $3.3 million
  • Losses (first 9 months of 2023): Tens of millions
  • Cash on hand (end of September 2023): $1.8 million
  • Total liabilities (end of September 2023): $60.5 million

Limited User Base Compared to Social Media Giants

Another challenge facing Truth Social is its relatively small user base compared to established social media platforms. Estimates suggest the platform has around 5 million active users, a far cry from the billions of users on Facebook, Instagram, and TikTok.

Comparison of monthly active users:

  • Truth Social: ~5 million
  • Facebook: >2 billion
  • TikTok: >2 billion
  • Twitter (now X): >300 million

While Truth Social outperforms some "alt-tech" rivals like Parler and Gettr, its limited reach may hinder its ability to attract advertisers and generate substantial revenue growth.

Trump's Shares Locked Up for Six Months

Although Trump's stake in the newly public company is valued at around $3 billion, he faces restrictions on selling his shares for at least six months post-merger. This lock-up period, common in SPAC deals, prevents insiders from immediately cashing out and potentially destabilizing the stock price.

However, there is a possibility that the company's board of directors, which includes Trump associates like his son Donald Trump Jr. and former congressman Devin Nunes, could vote to waive or shorten the lock-up period. This would allow Trump to access liquidity sooner, potentially helping him address his mounting legal expenses.

Mounting Legal Troubles and Financial Pressures

Trump's legal woes have intensified in recent months, with the former president facing a $454 million civil fraud judgment in New York and an $83 million defamation judgment related to writer E. Jean Carroll's sexual abuse allegations. These financial pressures, along with ongoing criminal investigations, have raised questions about Trump's ability to secure bonds and pay legal fees.

Timeline of recent legal developments:

  • March 2024: Trump faces Monday deadline to post $464 million bond in New York civil fraud case
  • January 2024: Jury finds Trump liable for sexually abusing E. Jean Carroll, awards $83 million in damages
  • Ongoing: Multiple criminal investigations into Trump's business dealings and actions surrounding the January 6, 2021 Capitol riot

While the potential windfall from Truth Social's public listing could provide some relief, experts caution that the company's stock may be overvalued and that Trump's ability to monetize his stake may be limited in the short term.


The public debut of Trump's Truth Social marks a significant milestone for the former president, potentially boosting his net worth by billions of dollars on paper. However, the company faces numerous challenges, including financial struggles, a limited user base, and Trump's mounting legal troubles.

As Truth Social begins trading under the "DJT" ticker symbol, investors and observers will closely watch the company's performance and Trump's ability to navigate his legal and financial pressures. The success or failure of Truth Social could have implications not only for Trump's personal fortune but also for his political future as he gears up for a potential 2024 presidential run.

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