Donald Trump Set To Be $3 Billion Richer As $464M Fraud Bond Deadline Approaches

Former president Donald Trump is reportedly about to get $3 billion richer after investors approved making Trump Media a publicly traded company. Trump Media owns and runs the billionaire's social media platform, Truth Social.

This news comes amid Trump's attempt to post a $464 million bond in his New York City fraud trial. The business mogul recently made a desperate plea to his supporters to assist him in raising the money as the deadline for the bond approaches.

According to CNN, thanks to approval from shareholders, a significant obstacle has been removed for a long-delayed merger that would give former President Donald Trump a multibillion-dollar windfall at a time when he is under intense legal and financial pressure.

A preliminary vote total revealed during a meeting showed that most Digital World Acquisition Corp. shareholders approved the merger with Trump Media. According to the corporations, the merger could be finalized early next week.

After the merger is finalized, the company will be known as Trump Media & Technology Group. It will also trade under the "DJT" ticker, which is Trump's initials.

With shares valued at more than $3 billion at current market levels, Trump will own a major portion of a publicly traded company.

Despite the new merger's many positives for Trump Media, experts believe that it won't result in Trump being bailed out of his current cash crunch.

Speaking to CNN, Matthew Kennedy, senior initial public offering market strategist at Renaissance Capital, noted, "[former] President Trump won't be able to monetize that stake right away."

The deadline for the ex-president to post bond on his $464 million fine draws near, and he risks losing several of his properties and assets. NY AG Letitia James has already made it clear that she is ready to seize several of Trump's properties if he fails to post bond.

According to experts, the problem with the ex-president's current merger is that the stake is not as liquid as it seems, and Trump would have a very hard time turning the paper gains into cash.

Charles Whitehead, a professor of law, told the news outlet that the 77-year-old's stake in the company is less liquid than his real estate holdings.

The market is also reportedly overvaluing Trump Media due to the company's fundamentals, which means that it would be difficult for Trump to sell the stock or pledge it as collateral.

Another problem is that the former president's social media platform, Truth Social, struggles to retain users.

According to Similarweb statistics shared with CNN earlier this month, the number of Truth Social's monthly active users in the U.S. on iOS and Android is down 39% year-over-year. X (formerly known as Twitter) is also shrinking, although at a slower rate than Truth Social, which is already considerably smaller.

In spite of these indicators, Trump Media is still valued at over $6 billion. Jay Ritter, a finance professor at the University of Florida, believes the current market price is difficult to justify, branding the stock a "meme stock."

Ritter said, "It is grossly overvalued. It qualifies as a meme stock for which the price is divorced from fundamental value…Meme stock investors are usually buying on the basis of the greater fool theory of investing: It is overvalued today, but I hope to make money selling it to an even greater fool tomorrow at an even higher price."

News of the former president's merger comes after Trump begged his supporters to help him post the $464 million as the deadline approaches.

Trump's plea, delivered through his joint fundraising committee, urged supporters to donate $20.24 to $3,300 or beyond. In the message, he also claimed that New York Attorney General Leticia James was after his properties, specifically his Trump Tower.

Showing his dissatisfaction about the possibility of his property being seized, Trump vehemently declared in the piece, "KEEP YOUR FILTHY HANDS OFF OF TRUMP TOWER!"

The 77-year-old alleged that his legal troubles were a "witch hunt" backed by President Joe Biden, though Biden has previously denied having anything to do with Trump's legal matters.

"So before the day is over, I'm calling on ONE MILLION Pro-Trump patriots to chip in and say: STOP THE WITCH HUNT AGAINST PRESIDENT TRUMP!" Trump's message read.

The NY AG previously told ABC News reporters that she is prepared to seize Trump's assets if he is unable to raise the money to pay his fine. James noted that her eyes were set on Trump's 40 Wall Street building.

"If he does not have funds to pay off the judgment, then we will seek judgment enforcement mechanisms in court, and we will ask the judge to seize his assets," she said.

"We are prepared to make sure that the judgment is paid to New Yorkers, and yes, I look at 40 Wall Street each and every day," James added.

The AG also slammed the ex-president's claims that his case had "no victims," noting that "Financial frauds are not victimless crimes."

"He engaged in this massive amount of fraud. It wasn't just a simple mistake, a slight oversight; the variations are wildly exaggerated, and the extent of the fraud was staggering," James continued. "If average New Yorkers went into a bank and submitted false documents, the government would throw the book at them, and the same should be true for former presidents."