Trump Media, the parent company of Truth Social, experienced yet another blow as its stock plummeted by 18.3% on Monday following the filing to register millions of additional shares. This decline came at a challenging time for the struggling stock, with its majority stakeholder, Donald Trump, going on trial.

When the stock market opened at 9:30 am ET, Trump Media shares dropped by a significant 13% and continued to fall throughout the day, reaching a decline of 17.5% by 2:45 pm ET. By the end of trading in New York, Trump Media & Technology's stock had fallen a total of 18.3%, wiping off hundreds of millions of dollars from its value.

After its launch last month, the company had reached a valuation of approximately $8 billion. However, it has subsequently suffered a loss of 60% of its value. This latest dip in share price can be attributed to a Securities and Exchange Commission (SEC) filing, in which the Trump Media & Technology Group (TMTG) proposed the release of 21.4 million shares of common stock.

The release of new stock has the potential to devalue the existing shareholders' stock, resulting in a decline in share price. The move is seen as an attempt to raise funds for the company during a period in which it is experiencing financial losses.

Coinciding with this stock decline, Donald Trump made his way to Manhattan Criminal Court for the start of his first criminal trial. The trial began with jury selection on Monday morning, where the former president faces 34 felony counts of falsifying business records in relation to hush money paid to adult film star Stormy Daniels to silence allegations of an affair prior to the 2016 presidential election.

As the majority stakeholder in Trump Media, the outcome of the trial could have implications for the company. While the share price fall is not directly linked to Trump's criminal trial, Trump Media's latest SEC filing acknowledged that any decrease in Trump's popularity or the emergence of new controversies could adversely impact the company's operations.

The issuance of exercise warrants is a common practice in special-purpose acquisition company (SPAC) deals, such as the one Trump Media participated in when it went public in March. Through a merger with Digital World Acquisition Corp (DWAC), Trump Media became publicly traded on NASDAQ under the ticker symbol "DJT." Initially, shares were valued at approximately $58, but within a week, the value dropped to $48.66. By Monday, shares were selling at just $28.30, less than half the opening day value.

Trump Media predicted that it could potentially receive up to $247.1 million from the exercise of warrants if the common stock trading price remains above $11.50 per share.

As the company continues to face challenges, including share value drops and its majority stakeholder's ongoing criminal trial, the future of Trump Media remains uncertain. Only time will tell how these events will impact the company's operations and its position in the market.