Trump Media & Technology (DJT), parent of Truth Social, surged Monday after the company announced Friday that it expects to receive around $70 million in proceeds from the cash exercise of warrants on Thursday and Friday. The Donald Trump-backed company has been hemorrhaging cash.

↑
X

NOW PLAYING
How To Pick Great Stocks: Look At The Earnings Line

Trump Media said on Friday that if all warrants are exercised for cash, the company could receive approximately $247 million in proceeds. The Trump stock rallied more than 20% to 33.31 during market trade on Monday. This comes after gaining 3.6% on Friday.

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.”

DJT shares are now advancing above their 200-day moving average after falling around 50% since a Manhattan jury found former President Donald 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.

The advance by DJT stock Monday also comes as Trump and President Joe Biden are poised to appear on the CNN-hosted debate stage Thursday.

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 86%. Trump has a nearly 65% stake in DJT.

Please follow Kit Norton on X @KitNorton for more coverage.

YOU MAY ALSO LIKE:

Is Tesla Stock A Buy Or A Sell?

Get Full Access To IBD Stock Lists And Ratings

Learning How To Pick Great Stocks? Read Investor’s Corner

Is Rivian A Buy Right Now After It Launched Its New Product Line?

Market Pauses As Nvidia Reverses Lower; Two Titans Near Buy Points