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WASHINGTON – Former President Donald Trump is facing financial difficulties as he wrestles with legal battles on multiple fronts as he tries to raise money to retake the White House.
Trump has been ordered to post $500 million bail in the civil fraud case, which his lawyers say is “practically impossible.” And in the 2024 presidential campaign, President Joe Biden is rivaling him in fundraising.
But an agreement to take his social media platform, Truth Social, and its parent company public would provide the former president and businessman with a vital lifeline, more than doubling his net worth. He could have a net worth of more than $3 billion.
The deal is not yet solidified, and there are still some hurdles to clear if President Trump wants to access his newfound wealth quickly. Here’s what you need to know about President Trump’s social media agreements and his financial woes.
What is TruthSocial?
Truth Social is a social media platform that Trump launched after the 2020 election. The app is similar to X (formerly Twitter) and has become President Trump’s messaging tool of choice after his X account was permanently suspended for false claims of election fraud. His account was reinstated after Elon Musk took control of the platform, but Trump remained on Truth Social.
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The app is marketed as an alternative social media platform for conservatives. President Trump said in his statement that he launched this platform to “confront the tyranny of Big Tech.”
What is the Truth Social merger?
Investors on Friday gave the green light to a merger with Trump’s media technology company, also known as Trump Media & Technology Group. The company, which owns Truth Social, is merging with Digital World Acquisition Corp., a SPAC designed to raise capital and merge with other entities.
If all goes well as agreed, Truth Social could begin trading on Monday under the label DJT, Mr. Trump’s initials.
Trump’s stake in Truth Social’s parent company is worth more than $3 billion, but a prior agreement gives Trump six months to sell his stake or borrow cash against the stock. Forbidden. Even if the deal holds, President Trump’s financial problems won’t be resolved anytime soon.
What are President Trump’s financial problems?
Trump’s most pressing issue is the nearly $500 million in bail he has been ordered to post by Monday.
Last month, a New York judge ruled in a civil fraud case that the former president had inflated the value of his assets and fined him about $454 million. President Trump is seeking to appeal the verdict and will be required to pay bail equal to the fine. However, his lawyer told the Court of Appeal that it was “practically impossible” to post bail.
His lawyers said, “Despite a thorough review of the market, efforts to obtain bail for the defendant in the amount of the judgment have been unsuccessful because, under the circumstances presented, $464,000. For the simple reason that it is virtually impossible to obtain $10,000 in appeal bail.” Submission to court.
If President Trump fails to post bail by Monday, New York Attorney General Letitia James could begin collecting fines from last month’s case. If Trump fails to repay, James could begin seizing his assets.
President Trump’s fundraising numbers
Trump is running for a second term amid legal troubles and is lagging far behind Biden in campaign fundraising.
Mr. Biden raised $21.3 million in February, nearly double the $10.9 million Mr. Trump raised in the same month, according to Federal Election Commission filings.
Not only that, but the Biden campaign has $71 million in cash on hand, while the Trump campaign has less than $33.5 million in cash on hand.
Can truth social trading save Trump?
perhaps.
President Trump may ask the company Truth Social is merging with to waive a six-month waiting period, known as a “lock-up” clause, before converting his stock into cash. has its own complex problems.
But waiving this requirement could reduce the company’s value and limit the amount of stock Trump can sell, preventing him from even taking advantage of all the stock he owns. there is a possibility.
With Monday’s deadline looming, it’s still unclear how President Trump will be able to put together the $464 million bond. Meanwhile, Trump’s lawyers are seeking to lower his bail requirements or have them waived entirely.
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