The bonus, referred to as "earnout" shares, was activated as a result of the company's share price maintaining certain thresholds, according to a disclosure by the group on Tuesday..
Trump Media said in the filing that as of April 26, it officially confirmed the fulfillment of the performance criteria, leading to the issuance of the Earnout Shares to Trump.
This comes at a time when Trump Media shares recorded a nearly 7% increase, maintaining an upward trajectory that has propelled the owner of Truth Social to surge approximately 50% within the last week.
Closing at approximately $50 per share, Trump Media & Technology Group marked a decrease of roughly 30% from its opening price of $70.90 at the end of March.
In the last month, the stock has experienced significant volatility, reaching highs of approximately $60 per share and hit a low of slightly above $20 per share.
However, the recent surge in Trump Media's stock price has taken place despite absence of substantial positive developments regarding its financial performance.
Trump's ownership in Trump Media has now risen to a more commanding position, totaling 114.75 million shares. The value of Trump's ownership in the company, as well as his overall net worth, has experienced significant fluctuations in recent weeks, similar to the erratic movements of the share price.
However, the newly acquired earnout shares by Trump are subject to lock-up restrictions, preventing insiders from selling or leveraging their stock for several months, as per regulatory filings.
Even if Trump finds a way around the lock-up agreement, experts believe it would be challenging for him to swiftly divest his stake without adversely impacting the stock price, given his roles as chairman and primary user of Truth Social, and being the largest shareholder.
Trump Media's stock price has undergone considerable volatility, reaching its peak at $66 on March 27, the day after going public. It later plummeted to a low of $22.84 on April 16, only to rebound and double in value to nearly $50.
Despite the sharp declines in late March, Trump Media's stock remained well above levels that would have jeopardized the earnout shares.
