Trump Media (NASDAQ:DJT) stock erupted today, days after the company was permitted to register additional shares. Indeed, DJT stock is up 23% at the time of writing, erasing some of its recent losses over the past several weeks.
Today’s surge appears to be related to a decision by the Securities and Exchange Commission (SEC), which allowed Trump Media to register additional shares. As part of the registration, some early investors have been given the ability to resell certain shares and exercise previously issued stock warrants, which let their holders buy shares at a preset price within a given time period.
On Friday, Trump Media stated it expects to receive almost $70 million from the warrants exercised late last week.
DJT Stock Soars Ahead of Election
After today’s jump, DJT stock is up 93% year-to-date. Since completing its special purpose acquisition company (SPAC) merger back in March, Trump Media has enjoyed a strong year, albeit with some notable volatility.
At last month’s quarterly earnings report, Trump Media announced a net loss of $327.6 million on revenue of just $770,500.
Trump Media’s $6 billion in market capitalization is largely dependent on former President Trump and his associated popularity. Trump recently suffered a major setback after being found guilty of 34 felony counts back in May. He was found guilty on charges related to a hush money payment to adult film star Stormy Daniels ahead of the 2016 election. That said, he remains likely to receive the Republican presidential nomination.
Trump owns about 114,000,000 shares of Trump Media, about 65% of the company’s stock. Interestingly, as per the conditions of the company’s SPAC merger lock-up period, Trump can’t sell any of his current ownership until late September.
Trump’s Truth Social remains the ex-president’s favorite social media outlet. That said, he recently joined TikTok as a means of garnering more traffic.
On the date of publication, Shrey Dua did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
