Trump Media & Technology, parent of Truth Social, is surging this week ahead of Thursday's debate between President Joe Biden and former President Donald Trump.
As of Thursday, shares of DJT have advanced 42% this week. This comes as Trump Media announced last Friday it expects to receive around $70 million in proceeds from the cash exercise of warrants, according to regulatory filings.
The Donald Trump-backed company added late last week that if all warrants are exercised for cash, the company could receive approximately $247 million in proceeds. Trump Media has been hemorrhaging cash.
The Trump stock jumped more than 4% during premarket trade on Thursday. On Wednesday, DJT shares gained 7.9% to 39.25. The advance by DJT stock this week comes as Trump and Biden are poised to appear on the CNN-hosted debate stage late Thursday.
The Trump stock is advancing above its 200-day moving average after falling around 50% since a Manhattan jury found Trump guilty of 34 felonies on May 30 in the court case around falsifying records to cover up hush money paid to a porn star.
In April, Trump Media filed a "preliminary prospectus" with the U.S. Securities and Exchange Commission (SEC) to offer 21.49 million shares of common stock, issuable "upon the exercise of warrants."
Donald Trump: Trump Media Stock
In May, Trump Media & Technology reported another quarterly loss while revenue once again failed to hit $1 million.
Trump Media reported an adjusted EBITDA loss of $12.1 million, with just over half of that due to one-time payments related to the March closing of its SPAC merger with Digital World Acquisition Corp.
Revenue was just $770,500, the second straight quarter below $1 million.
Trump Media reported a GAAP loss of $327.6 million. That was largely due to $311 million in noncash expenses from converting promissory notes and eliminating previous liabilities.
At the time, the company said it believes it has "sufficient working capital to fund operations for the foreseeable future."
Trump Media jumped more than 16% on March 26, its first day trading under the DJT ticker, hitting a high of 79.38 intraday. This followed Digital World Acquisition becoming Trump Media & Technology Group after successfully merging with Trump's tech and social-media platform on March 22. The SPAC company stock had rallied 35% on the day before the change to "DJT."
In 2024, DJT/DWAC has gained 124%. Trump has a nearly 65% stake in DJT.
Please follow Kit Norton on X @KitNorton for more coverage.
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