Trump Media & Technology Group Corp. shares rose 16% on Wednesday, regaining some of the billions in market value lost in the three weeks since its debut as a public company.
Former President Donald Trump’s media company closed at $26.40, down from Tuesday’s close of $22.84, its best debut day since its merger with Digital World Acquisition Corp. The recovery came as more than 13 million shares changed hands and warrants were tied to the company. rose 30% to $11.45.
The swings are fueling the trend of companies going public that use special purpose acquisition companies, with a growing number of so-called de-SPACs seeing hot starts quickly turn into a downward spiral. Even with Wednesday’s rebound, the stock is still down about $5.4 billion from its peak last month, with the value of Trump’s position falling to $2.1 billion.
As part of the deal’s structure, Trump Media insiders, including the former president, are prohibited from selling shares until September. However, the board could lift the selling restrictions, which would pave the way for many of the largest holders to cash out once U.S. regulators deem the bid effective.
Trump Media said Tuesday it has completed the research phase of its new live streaming platform. Its core operations have largely struggled since its launch, with Trump Media losing more than $50 million last year despite generating just $4.1 million in revenue, according to regulatory filings.
With shares up 51% this year, stock volatility has made deals difficult for Wall Street professionals. It’s in the middle of the market most expensive shortsas financing fees topped 700% earlier this month and the options underlying the stock prompted people like former bond king Bill Gross to opt for sell high-value derivatives instead of a direct bet on shares.
Trump faces four criminal charges in his campaign to return to the White House. The first criminal trial began Monday in Manhattan, where he is accused of falsifying business records to conceal a hush-money payment to a porn star before the 2016 election. He called this case arbitrariness and persecution.