Shares of Trump Media & Technology Group Corp. rose 16% on Wednesday to recoup some of the billions in market value it lost in the three weeks since it debuted as a public company.
Former President Donald Trump’s media company closed at $26.40, up from its Tuesday close of $22.84, in its best day after a merger with Digital World Acquisition Corp. The rebound came as more than 13 million shares changed hands, while warrants were tied to the company. rose 30% to $11.45.
These fluctuations continue the trend of companies using special purpose acquisition companies to go public, with a growing number of so-called “de-SPACs” seeing hot startups quickly turn into downward spirals. Even with Wednesday’s rebound, the stock is down some $5.4 billion from its peak last month, with the value of Trump’s position falling to $2.1 billion.
Under the structure of the deal, Trump Media insiders — among them the former president — are barred from selling shares until September. However, the board could lift sales restrictions, which would open the door for many of the largest holders to cash out once a deposit is deemed effective by U.S. regulators.
On Tuesday, Trump Media announced that it had completed the research phase of its new live TV streaming platform. The underlying operations have mostly struggled since their launch, with Trump Media losing more than $50 million last year while generating just $4.1 million in revenue, according to regulatory filings.
While shares are clinging to a 51% gain this year, the stock’s volatility has made it a tough trade for Wall Street pros. It is among the most expensive shortswith financing fees surpassing 700% earlier this month, and options underlying the stock that caused actors like former “Bond King” Bill Gross to choose to sell expensive derivative products instead of betting directly on the stock.
Trump faces four criminal charges as he campaigns to return to the White House. The first criminal trial opened Monday in Manhattan, where he is accused of falsifying business records to hide a secret payment to a porn star before the 2016 election. He has described the case as a scandal and persecution .
