Experts say the revenue Donald Trump has booked through Truth Social’s parent company will provide opportunities for outside interests if he wants to defeat Joe Biden and be re-elected president.
Trump owns more than 50% Trump Media & Technology Groupof outstanding shares, you will see profit The holding will hold more than 35 million shares through at least the next year, when he is likely to serve as president, according to a new disclosure filed with the Securities and Exchange Commission. Securities and Exchange Commission. Experts explained that such a financial gain scheme could lead to possible investments in the company by foreign or domestic interests in an attempt to pressure and influence Trump during his tenure as commander in chief.
“I have a lot of concerns,” said Virginia Canter, chief ethics counsel at Citizens for Responsibility and Ethics in Washington, D.C.
“Obviously, my biggest concern is the foreign interests that have made significant investments in his companies and who expect to receive some kind of preferential treatment if needed – even if it threatens U.S. national security interests and historical alliances.” Te said.
Trump’s spokesman said in a statement that the former president would abide by ethical principles if he were to defeat Biden, but did not provide any details.
“When President Trump returns to the White House, he will continue to abide by ethical principles,” Trump spokesman Steven Cheung said in an email.
Trump’s condition for profit is that the stock must reach a certain value within a specific time frame before the former president sees any shares he is owed. He also signed a lock-up agreement that did not allow him to cash in his shares for six months unless he received a waiver.
For example, if Trump Media and Technology Group’s U.S. dollar volume-weighted average price equals or exceeds “12.50 per share for twenty (20) of the thirty (30) trading days since the most recent listing closing date, USD” and 18-year-old Trump will be “entitled to receive 13,500,000 award shares” on the one-month anniversary of the agreement, it was disclosed.
The new Trump Media stock has been volatile since it began trading. When the company listed on Nasdaq on March 26, its stock price surged 50%. The company’s shares fell about 20% on Monday.
“Whether or not he receives a gain, the value of his stock may be based on his own actions during his tenure or those Those seeking to gain his favor, including institutional investors and foreign entities, have surged,” the campaign legal center, a watchdog group, said in a statement to CNBC. “Moreover, many investors may simply buy stock in the president’s companies because they rationally expect that he will do whatever he can to increase value.”
Payne said overall stock prices could fluctuate if anyone tries to use investments to influence Trump during his presidency.
Veteran stockbroker Peter Schiff said in a post that Trump could also “borrow against his appreciating stock” and use it to fund his campaign. X. He suggested supporters might end up buying shares in Trump’s companies rather than donating to his campaign to help the former president fund his recent bid for the White House.
The measure comes as Trump is struggling to raise money for his campaign while tapping donors to help pay for his massive legal bills. He is also expected to post a $175 million bond.
Another disclosure said the stark reality of the stock price does not appear to reflect the Trump Media and Technology Group’s overall business, which relies heavily on Trump and his followers to help it grow.
The company disclosed a net loss of $58 million in 2023. The company acknowledged in a separate filing that its business plan relies on Trump’s popularity and his massive social media following, turning to Truth Social for the company’s success.
Trump has more than 87 million followers on X, but less than 7 million on Truth Social. Trump leads Biden by 1 percentage point in the polls, according to the Real Clear Politics polling average.
“If any of these or other events causes his followers to lose interest in his messages, the number of users of our platform may decline or not grow as we assume. To the extent that users TMTG’s ability to attract users may decline under President Trump, who prefers irrelevant platforms,” Trump Media and Technology Group wrote in a filing.
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