Trump Media & Technology Group Corp. has been experiencing significant turbulence in the stock market since its public debut, with fluctuations driven by both retail investors and short sellers. However, the overall trajectory in recent weeks has been consistently negative, with the stock losing more than half of its value since May 30th. This decline coincides with the conviction of Donald Trump on 34 felony counts of falsifying business records by a New York jury.
While it is not definitively clear if Trump's conviction directly triggered the stock decline, the company has acknowledged in SEC filings that adverse legal outcomes for Trump could negatively impact Trump Media & Technology Group and its Truth Social platform. Some analysts have also pointed to the Securities and Exchange Commission's approval of Trump Media's registration of additional shares as a contributing factor to the stock slide.
The SEC's approval allows early investors in the company to resell certain shares and exercise stock warrants, potentially diluting the stock price. Despite this, Truth Social has stated that it could potentially raise up to $247 million if all warrants are exercised for cash.