Shares of former president Donald Trump's social media company, Trump Media & Technology Group, experienced a steep decline of 12% on Monday, adding to their ongoing losses. The plunge came after the company disclosed in a regulatory filing that it plans to sell millions of additional shares in the coming months.

According to the filing, Trump Media & Technology Group is considering the sale of approximately 146.1 million shares. Of these, 114.8 million shares are owned by Trump himself. The filing also highlighted an additional 21.5 million shares that could be sold through the exercise of certain warrants issued during the company's initial public offering via a blank-check merger with Digital World Acquisition Corp.

Since its market debut on March 26, shares of the Truth Social parent company have witnessed a significant decline, falling 60% from the opening price of $70.90. However, Trump is currently bound by a lockup agreement that restricts him from personally selling his shares until September. This agreement further ties his wealth to the company's market value, potentially allowing him to amass billions of dollars if the price remains stable.

Meanwhile, Trump's criminal trial commenced on Monday in a Manhattan court, coinciding with the decline in the company's stock. He faces 34 felony counts related to falsifying business records concerning hush-money payments made to adult film star Stormy Daniels. This marks the first criminal trial of an American president, and the proceedings are expected to last approximately six weeks.

Trump's financial circumstances have become increasingly strained over the past year, as he has been faced with numerous legal challenges. Currently owing around $500 million as a result of civil fraud, defamation, and sexual abuse cases, Trump Media offers him a potential lifeline to pay off his debts and generate income. The company, which boasts support from some of Trump's most prominent political donors, presents a future source of revenue for the former president.

In recent weeks, various Democratic-aligned groups have called on Congress to investigate Trump Media amidst concerns surrounding the company's alleged associations. In early April, two Florida brothers pleaded guilty to insider trading charges related to Trump's social media venture. Additionally, The Guardian reported that the company relied on loans from a Russian-American businessman who is presently under federal investigation for money laundering and insider trading.

As Trump Media & Technology Group faces a share slump and continues to navigate legal scrutiny, the future of the social media company remains uncertain. Only time will tell how these developments will impact both Trump and the company's financial prospects.