ALBAWABA – According to a court document, former President Donald Trump and his co-defendants have posted a $175 million bond in their New York civil fraud lawsuit, according to ABC News, after his net worth dropped $1B in value as his social networking firm dropped 21 percent.
A committee of judges from New York's Appellate Division offered the former president, his adult sons, and two former Trump Organization executives a 10-day hold on the $464 million civil fraud verdict and a $175 million reduced bond last Monday.
Last Monday, Trump was confronted with an end date to post a bond of over $500 million In a New York fraud case. However, a state appeals court gave him a little grace, reducing the amount he would need to deposit down to $175 million, while his company, Trump Media & Technology, Group completed a 29-month merger procedure.
Shares of Donald Trump's social networking firm saw a 21 percent decline on Monday, cancelling out most of gains from last week's liftoff when it debuted on the stock market, and costing the former president $1 billion of his net worth value.
With only $4.1 million in revenue for 2023, the entirety of which was generated by advertisements on its Truth Social platform, Trump Media & Technology Group revealed a $58 million net loss in a public SEC filing, with only a $751,500 in forth quarter revenue.
Ross Benes, analyst at Insider Intelligence commented that “Truth Social was overvalued and that reality is dragging down the stock. Because the service does have not have a clear path to profitability and its revenues are meager, its high debut was unsustainable,” as reported by Reuters.
The financial filing adds that Truth Social “expects to continue to incur operating losses and negative cash flows from operating activities for the foreseeable future, as it works to expand its user base, attracting more platform partners and advertisers.”
Trump Media & Technology Group, which began trading about a week ago after merging with a publicly listed shell corporation, has benefited from "meme stock" investors, according to The Daily Beast, who lifted its share price despite its poor financial performance.
With Reuters adding that the take-off for the newly debuted stock towards a $58 share price was also boosted by Trump supporters, as he is likely to be the Republican nominee in the upcoming 2024 US Presidential elections, before the shares dropped by $13.30 on Monday.
