9 Billion

Shares of Donald Trump's media and technology company, Trump Media & Technology Group, plummeted 12% on Monday, prolonging a selloff that has significantly reduced the value of Trump's stake in the firm. Currently valued at $2.9 billion, this decline follows the company's recent disclosure of substantial financial losses and concerns about meeting its financial obligations.

Investors who initially showed enthusiasm for Trump Media & Technology Group have now grown disenchanted, leading to a sharp decline in the company's stock. Closing at $37.17 on Monday, the share price is far below the record high of $79 achieved during its debut on March 26. With a decline of approximately 40% in April alone, the company faces significant challenges in restoring investor confidence.

The diminishing value of Trump's stake in the company carries significant implications for his ongoing presidential campaign and legal expenses. While Trump owns approximately 78.75 million shares, worth an estimated $6 billion just last month, the current market value of the entire Trump Media & Technology Group is now lower, valued at around $5.55 billion. However, lock-up restrictions for the next six months may prevent Trump from selling or borrowing against his shares.

Meanwhile, the sharp decline in the company's stock has offered some relief to short-sellers who had previously incurred substantial losses. Trump Media & Technology Group currently has a short interest of about 4.75 million shares, representing 12% of its free float. As the stock dropped on Monday, short-sellers saw market-to-market profits of approximately $16 million. However, despite this gain, those who have been shorting the stock are still down 69% for the year.

Ihor Dusaniwsky, the managing director of predictive analytics at S3 Partners, remarked on the recent market developments, stating, "DJT's recent price weakness has offset the huuuuge financing costs short sellers are incurring and keeping many of them in the trade." This indicates that, while short-sellers have seen some relief, the continued decline of Trump Media & Technology Group poses ongoing challenges.

As Trump's media and technology firm struggles to regain investor confidence and meet its financial responsibilities, the value of his stake continues to dwindle. With uncertainties surrounding the company's future performance, the financial implications for Trump's political ambitions and legal expenses remain in question.