Trump’s stock plummets following announcement of significant share sale

The Trump Media & Technology Group (TMTG) is facing a major shakeup as the company announced a new public share offering that could significantly impact its ownership structure. The struggling company, which has been hemorrhaging money, is hoping that the infusion of new shares will help stabilize its financial situation.

However, the addition of 21.5 million shares for sale could have a detrimental effect on existing shareholders, including former President Donald Trump. With the new offering diluting the ownership stakes of current shareholders, including Trump, the value of their holdings is expected to decrease substantially.

The move to issue more shares is seen as a necessary step for TMTG to raise much-needed capital, despite the potential backlash from shareholders. Matthew Tuttle, CEO of Tuttle Capital Management, acknowledged that while the decision may upset investors, it is a strategic move for the company’s survival.

The news of the share offering sent TMTG’s stock plummeting by more than 18% on Monday, marking a significant decline from its peak value. Despite the recent setbacks, experts believe that the stock’s downward trajectory may be temporary, with some investors viewing it as an opportunity to buy the dip.

The ongoing legal proceedings involving Trump also pose a risk to TMTG’s reputation and brand, as noted by the company in a warning to potential investors. The uncertainty surrounding Trump’s legal troubles could further impact the company’s future prospects.

As TMTG grapples with financial challenges and regulatory scrutiny, the company’s future remains uncertain. Shareholders, including Trump, are closely monitoring the developments as the company navigates through this turbulent period.