Former President Donald Trump's Trump Media & Technology Group Corp. saw its shares surge by nearly 18% in early trading on Wednesday, following a remarkable market debut. This increase added approximately $1.4 billion to the company's value, significantly boosting Trump's personal stake to over $5 billion.
The company, parent to Truth Social, witnessed over 6 million shares being traded on Wednesday morning alone, marking it as one of the most actively traded companies in the U.S. This follows a record trading day where nearly 56 million shares were exchanged, coinciding with the announcement of a merger with Digital World Acquisition Corp. back in October 2021.
Trump Media & Technology Group has positioned itself as a challenger to big tech companies like Meta Platforms Inc., Netflix Inc., and Elon Musk's X. It has attracted a vast number of individual investors, many of whom are actively discussing their investments on platforms such as Reddit Inc.’s WallStreetBets forum and StockTwits.
The influx of funds comes at a pivotal moment for Trump, who is currently allocating millions of dollars monthly towards his ongoing legal battles. With his first criminal trial set for April 15 and a recent civil ruling mandating him to pay $454 million for fraudulently inflating his wealth, the financial boost is timely.
Since transitioning from Digital World's ticker DWAC to its public trading debut this week, the stock has experienced a 230% increase this year through Tuesday's close. The surge not only reflects investor enthusiasm for Trump’s 2024 re-election campaign but also ranks the stock as a costly and risky option for short sellers.
