Trump’s stock plummets following announcement of large share sale

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The Trump Media & Technology Group (TMTG) is facing a major shakeup as the company announced a new public share offering that could significantly impact its ownership structure. The struggling company, owned by former President Donald Trump, has been losing money rapidly, and the new stock offering is seen as a way to raise much-needed funds.

The addition of 21.5 million shares for sale would dilute the existing shareholders’ stakes, including Trump’s majority ownership. This move could potentially devalue the company’s stock and lead to millions of shares being sold off. The decision to issue more shares has divided opinions, with some experts suggesting that it is necessary for the company’s survival, while others warn of the negative impact on shareholders.

Shares of TMTG have already plummeted more than 18% following the announcement of the new share offering. The stock had previously surged in anticipation of a merger with a blank-check acquisition company but has since lost more than 60% of its value.

Despite the recent setbacks, some analysts believe that the stock’s decline may be temporary and could present a buying opportunity for investors. However, concerns remain about the company’s financial health and its ability to generate revenue.

The ongoing legal proceedings involving Trump also pose a risk to TMTG’s reputation and brand. The company warned potential investors that any adverse outcome in Trump’s legal battles could negatively impact its business.

Overall, the future of TMTG remains uncertain as it navigates through financial challenges and legal uncertainties. Shareholders, including Trump, are closely monitoring the developments as the company seeks to secure its place in the competitive media and technology industry.

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