The decline follows the announcement by Trump Media & Technology Group that it lost around $60 million (£48 million) on revenue of only about $4 million in the previous year.
According to Bloomberg, the former president’s net worth decreased by $1 billion due to the price decline. With last week’s share increase, the company’s valuation reached an astounding $11 billion.
However, analysts had predicted that the price would fall since Truth Social, the company’s flagship product, is losing customers and losing money.
Small-time investors, at least some of whom seem to support the former president as his legal issues and the accompanying bills mount, have been the driving force behind the spike.
With a roughly 60% ownership stake in the business, Mr. Trump can profit billions of dollars when he cashes out his shares. However, he is legally prohibited from doing so for another six months unless the corporation’s board waives this restriction.
However, the business on which these investors are placing their money stated in a particular filing on Monday that it “expects to continue to incur operating losses and negative cash flows from operating activities for the foreseeable future” to the Securities and Exchange Commission (SEC).
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