DJT stock plunges 8% as Trump qualifies for 36 million bonus shares
- Trump Media shares fell 8% ahead of an expected earnout bonus for former President Donald Trump.
- Trump will receive an additional 36 million shares, worth about $1.15 billion, if the stock closes above a $17.50 minimum share price.
- The former president's stake in the company will be worth about $3.7 billion with the earnout bonus.
Trump Media shares fell 8% Tuesday as former President Donald Trump qualified for an expected earnout bonus.
DJT closed at $32.57 per share, about 50% below its opening price last month of more than $70.
Trump will receive an additional 36 million shares, worth about $1.15 billion, because the stock closed above a $17.50 minimum share price.
The earnout was contingent on the stock reaching the benchmark for 20 trading days within a 30-trading-day period.
Trump, the majority shareholder in DJT, already owns 78.75 million shares. The former president's stake in the company will be worth about $3.7 billion with the earnout bonus.
A spokesperson for Trump Media did not respond to CNBC's request for comment about the earnout.
The company also released a statement Tuesday highlighting steps shareholders could take to prevent the lending of their stock for short selling. On Friday, Trump Media warned the Nasdaq CEO of "potential market manipulation" of the company's stock by "naked" short selling of shares.