(MENAFN) Trump Media & Technology Group, the parent company of Truth Social, former US President Donald Trump’s online platform, commenced trading on the NASDAQ stock market on Tuesday with remarkable vigor. Shares surged so rapidly that they activated the fail-safe mechanism.
In the initial minute of trading, company shares soared by 50%, prompting NASDAQ to enact a five-minute pause to mitigate volatility. Although the stock moderated somewhat after the halt, it remained 40% higher than its opening price an hour into trading.
Listed under the initials DJT, the former president’s company effectively went public this week following the merger of Trump Media & Technology Group and the shell company Digital World Acquisition Corp (DWAC) on Friday.
DWAC was originally established as a special purpose acquisition vehicle, commonly referred to as a “blank check company,” with the objective of raising funds for the eventual merger with TMTG. Its own shares surged by 30% in January after Trump emerged as a frontrunner in the 2024 Republican primaries.
Per the terms of the merger, Trump is prohibited from selling his shares for six months unless authorized by the board of directors.
The stock's significant attention stems from its potential influence on Trump's financial status. Following the merger, Trump's net worth reportedly surged to $6.4 billion, per Bloomberg, positioning the former president among the world's top 500 wealthiest individuals. Nonetheless, Trump is contending with substantial court claims, amounting to millions of dollars, arising from various lawsuits. Trump has criticized these lawsuits as unfounded and politically driven.
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