In a significant blow to former President Donald Trump's media empire, Trump Media's parent company, responsible for a substantial portion of Trump's net worth, has seen its stock value plummet since May 30. The decline was further exacerbated by a recent decision to dilute existing shares, creating a dire situation for the beleaguered media company.

The trouble started when Trump Media's share price crashed after Trump's felony conviction on May 30, related to falsifying business records to conceal hush money payments. However, the situation worsened when the company announced on Tuesday that the Securities and Exchange Commission (SEC) had approved the creation and sale of over 14 million new shares, sparking a further decline in the stock price.

Trump Media, whose parent company went public in March, initially boasted impressive figures, reporting a revenue projection of $4.1 million for 2023. However, the company also revealed losses amounting to $58.2 million. Despite reaching a peak valuation of over $66 per share in March, the stock began to experience a downward trend ahead of Trump's conviction.

Following the verdict, where Trump was found guilty on all 34 counts related to attempts of covering up an affair, Trump Media's shares lost nearly a third of their value. In response, the company proceeded with its plan to dilute existing shares in April. As a result, the stock price currently hovers just above $25, representing a significant drop of over 25% since Tuesday morning.

By diluting existing investors' holdings, Trump Media aims to secure an estimated $250 million from stock sales. The company intends to utilize this new influx of cash to expand its portfolio by pursuing TV streaming opportunities, enhancing its platform, and exploring potential mergers and acquisitions, according to the CEO of Trump Media, Devin Nunes.

With reports indicating that Trump Media accounts for over half of Trump's wealth, the former president is particularly sensitive to the fluctuating stock prices. Throughout its existence, Trump Media has faced scrutiny and speculation regarding its associations with fraudulent accounting firms and allegations of serving as a financial conduit for Trump's allies.

As Trump Media struggles to regain stability and restore investor confidence following Trump's conviction and the subsequent share dilution, the media organization faces an uphill battle in a highly competitive market. Only time will tell if the company can weather the storm and recover from this episode of financial turbulence.