A media company co-founded by Donald Trump continues to hit new lows since going public in March 2024. While investors who bought before the SPAC merger was announced or when there were concerns about the deal being approved increased their investment, one member of Congress significantly reduced his original purchase.
What happened: A SPAC merger between Taking over the digital world (DWAC) and Trump's media and technology group DJT was announced in October 2021.
After multiple delays and setbacks in the approval process, the company officially completed the merger and began trading under the new name and stock symbol on March 26, 2024.
On the first day of trading, DJT shares traded between $57.25 and $79.38, opening at $70.90 and closing at $57.99.
Strong demand for Trump's media company helped boost the former president's wealth and also echoed the high prices seen by the former SPAC, Digital World Acquisition, when the deal was first announced.
Shares of Digital World Acquisition soared after Trump's SPAC deal was officially announced. Among the SPAC's buyers before the merger closed was the representative Marjorie Taylor Greene (R-Ga.), who disclosed that he purchased shares of DWAC on Oct. 22, 2021.
Shares of Digital World Acquisition traded between $67.96 and $118.80 on the day Greene made his purchase, and a tweet from UnusualWhales put the purchase price at $94.20.
“This transaction was reported in compliance with House rules and provides all required details about the transaction,” Green's office told CNBC at the time, confirming the deal.
The congresswoman's statement does not call for the exact price or the exact number of shares purchased to be made public. Instead, we know that Greene purchased shares worth between $15,000 and $50,000 and that the average reported price was $94.20.
Based on the total purchase price and share price above, Greene would have purchased between 159.23 and 530.79 shares. The purchase would now be worth between $3,437.78 and $11,459.76, which would be a drop of 77.1%.
If Greene had bought shares at the intraday low of $67.96 on the day of purchase, he could have bought between $220.72 and $735.73 shares. The $15,000 to $50,000 investment would now be worth between $4,765.34 and $15,884.41, a drop of 68.2%.
If Greene had bought shares at the intraday high of $118.80 on the day of purchase, he could have bought between $126.26 and $420.88 shares. The $15,000 to $50,000 investment would now be worth between $2,725.95 and $9,086.80, a drop of 81.8%.
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Why it is important: Greene has not disclosed in a filing that she has sold the shares, meaning she still owns the position and is currently at a significant loss. As a fervent Trump supporter, Greene could also be holding the position to show her support for the former president.
The congresswoman recently disclosed her first stock transactions in several years in May, when she announced several purchases. Greene also shared in a second filing in May that she bought shares of Apple, AMD, Caterpillar and several stocks along with large investments in U.S. Treasury bills. See Greene's transaction history here.
Recent 13F filings showed Trump Media and Technology Shares were purchased by people like BlackRock, State Street, Charles Schwab and Vanguard in the second quarter.
Trump Media & Technology shares have fallen over the past month after reporting quarterly financial results and seeing pressure on the stock with Trump's return to social media platform X, which is a rival to Trump Media & Technology-owned platform Truth Social.
DJT Price Action: Trump Media & Technology shares closed Tuesday at $21.42.
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