Former President Donald Trump finds himself in a financial windfall as his net worth skyrockets to unprecedented levels, propelled by a recent merger involving his social media venture. Trump's net worth surged by over $4 billion in recent days, reaching an estimated $6.5 billion, according to Bloomberg's Billionaires Index.
The surge in Trump's wealth follows the completion of a merger between Trump Media & Technology Group and Digital World Acquisition Corp. (DWAC). Trump, who holds nearly 80 million shares, approximately 58%, of Trump Media, saw the value of his stock rise to $4 billion on paper following DWAC's closing price of $49.95 a share on Monday.
The merger, which was finalized ahead of the company's debut on the stock market under the ticker symbol "DJT," marks a significant milestone for Trump, catapulting him onto the list of the world's 500 wealthiest individuals for the first time. Devin Nunes, CEO of the combined company, expressed the business's commitment to challenging Big Tech censorship and providing a platform for free expression.
Despite the surge in Trump's wealth, experts caution that the market may be overvaluing Trump Media given the company's financial fundamentals. Trump Media reported revenue of just $3.4 million in the first nine months of 2023, with a net loss of $49 million over the same period. Additionally, Truth Social, the social media platform operated by Trump Media, has seen a decline in its user base, raising concerns about its long-term viability.
The frenzy surrounding DWAC shares mirrors the speculative trading witnessed during the height of the pandemic, with meme stocks such as AMC Entertainment and GameStop experiencing similar surges. Trump's newfound wealth and the success of his media venture have garnered significant attention, but the sustainability of this growth remains uncertain amid ongoing challenges in the digital landscape.
