Funds that bet on a fall were set to profit as the parent of #TruthSocial came under renewed pressure after it registered new shares for a potential sale.
Shares of #Trump’s #socialmedia company plunged on Monday after the company filed to register the potential sale of tens of millions of additional shares.
@Nonilex Truth Social is nothing but a Mastodon instance which has not federated.
Its revenue is akin to that of a moderately-sized local business, which would suggest a value in the hundreds of thousands (maybe low millions?), not in the billions.
But Truth is both (1) shrinking, and (2) losing 10x more than it's taking in, so in reality, its liquidation value (they claim $200m cash on hand) is probably higher than its value as an ongoing business.
#Trump Media & Tech stock fell 18%, erasing hundreds of millions from its market value — & putting a dent in Trump’s majority stake, worth >$3B. Since a surge in its 1st days of trading as #TrumpMedia, which lifted the value of the co to ~$8B at one point, the company’s shares have dropped by >50%.
Trump Media was expected to register the potential sale of new shares after the completion of its merger w/ #DWAC, a #ShellCompany known as a #SPAC.
@Nonilex
There were multiple negative reports over the weekend regarding tfg's "scam social" stockholders utter displeasure with it's performance, or lack of! Sure is showing up today!
🤣