Truth Social is crashing and Trump just lost $865 million

Donald Trump’s net worth has declined by $865 million since the market opened today, after Trump Media & Technology Group’s (TMTG) stock price slid by 22% as investors digested an updated 8-K filing where TMTG’s management noted that they had “substantial doubt that TMTG will have sufficient funds to meet its liabilities as they fall due, including liabilities related to promissory notes previously issued by TMTG.”

What does this mean for the former president?

Well, Bloomberg recently pegged Donald Trump’s net worth at $6.5 billion, but the majority of his wealth is tied up in his $3.9 billion stake in Trump Media, with the rest associated with his illiquid real estate properties.

While Trump’s paper stake in TMTG is worth $3.9 billion at current prices, his 78.75 million shares are about 57.1% of all shares outstanding. Only 17 million shares have changed hands in each of the last two days, down from 55 million on March 26th, the first day that TMTG hit the market.

Between declining trading volume and Trump’s six month lockup, it will be difficult for the former president to sell a notable portion of his TMTG holding without sending the stock price even lower.

With this kind of volatility, it might be a rough couple of months for the majority shareholder.