Trump's Newly Public Media Company Gives Supporters 'Direct Path' To Boost Ex-President's Bottom Line, Brightens His 2024 Election Prospects

Donald Trump’s media company made its public debut under the name Trump Media & Technology Group Corp. DJT this week following its merger with blank cheque company Digital World Acquisition Corp. The listing will have a far greater implication for Trump’s presidential campaign, a report said Friday.

Net Worth Boost For Trump: TMTG began trading on the Nasdaq under the ticker symbol DJT on Tuesday. After opening at $70.90, the stock traded in a range of $57.25-$79.38 before ending at $57.99. Since its listing, the stock has gained 25%.

TMTG is parent to the Truth Social media platform, which Trump has used frequently ever since it was launched in February 2022. It has served as a means for the former president to communicate his messages to the public after being banned from most social media platforms following the January 2020 insurrection. Since then, Trump has been reinstated on many platforms.

Trump’s media company now boasts of a market cap in excess of $7 billion, based on the stock’s closing price on Thursday.

Despite the company’s very little revenue and history of losses, TMTG has the potential not only to enrich Trump but also bolster his chances in the November presidential election, said a Barron’s report. The spike in TMTG shares has beefed up the former president’s net worth in a matter of days, it added.

“There is no precedent for a presidential candidate gaining so much wealth, so quickly, and in this fashion months before an election,” the report said.

Although he cannot profit by selling the company’s stock in the near term due to insider trading restrictions, he will be free to sell the shares before the November election.

See Also: Best Social Media Stocks

Election Impact: Given that Trump has a significant stake in TMTG, individuals, companies and governments now have a “direct path” to influence the former president’s bottom line, according to Barron’s.

Economist Peter Schiff, who is a supporter of Trump, said in a post on X, formerly Twitter, on Wednesday that “Instead of donating to Trump’s campaign, supporters should just [buy] $DJT. Then #Trump can borrow against his own appreciated shares tax-free to self-fund his presidential campaign.”

“Trump will win in a landslide and all those #MAGA supporters who bought DJT shares will get rich,” he said.

While campaign finance laws place restrictions on the money individuals can donate to a single candidate, there is no limit on the TMTG shares Trump supporters can buy, the economist said.

“Trump owns almost 60% of DJT. So wealthy Trump supporters can get around those donation limits by buying DJT,” he said.

The Barron’s report said the listing changes the composition of Trump’s wealth from largely illiquid real estate-related assets to equity holdings that can be monetized relatively quickly once the lockup restrictions are lifted. The former president’s 30% share of a Manhattan office building on 1290 Sixth Avenue is worth about $300 million, Barron’s estimated. But realizing the value would require the concurrence of the majority owner of the building, it said.

Trump's newfound wealth could be a political asset and a financial one, the report said. Ron Bonjean, co-founder of the public-relations firm ROKK Solutions and a longtime Republican communications strategist said, “He's definitely going to use it to reflect his power and might, and that it's because of the supporters that have helped him…That can make a difference on Election Day, as well,” it added.

TMTG shares ended Thursday’s session down 6.43% at $61.96, according to Benzinga Pro data.

Read Next: Is Donald Trump’s Media Company Worth More Than Elon Musk’s X?

Photo: Shutterstock