Guilty Verdict in Hush Money Trial

The long-awaited Hush Money trial has concluded with a guilty verdict for former U.S. President Donald Trump.

A 12-member New York jury found Trump guilty on all 34 felony counts by a unanimous decision. The court has scheduled his sentencing for July 11. Trump now faces possible legal repercussions that could severely impact his 2024 presidential campaign.

This development has already sent shockwaves through political circles. While the exact sentence remains to be seen, the implications for Trump's political future are significant.

DJT Stock Takes a Hit

Trump's recently IPO social media company, The Truth Social, listed as Trump Media & Technology Group Corp (NASDAQ: DJT), has immediately felt the verdict's effect.

DJT stock slumped over 9% in the pre-market, taking its closing price of $51.84 down to $47.09 at the time of writing. The stock has experienced significant volatility since its initial public offering on March 26, where DJT shares were initially priced over $70.

Market Manipulation Concerns

In a never-ending drama surrounding the former president, just over a month ago, on April 19, Trump Media contacted Nasdaq about market manipulation concerns due to 'naked' short selling of its stock. Naked short selling, a form of securities fraud, negatively impacts the underlying stock.

In the following two weeks, DJT shares surged by 130% from their low point, pushing the stock price back above $50 per share. This significant rise in share price occurred after DJT had suffered a steep decline of 70% from March 27 to April 16.

"The stock has shown a consistent upward trajectory since the company raised concerns about potential fraudulent activity with Nasdaq."

Trump's Financial Gains

Donald Trump has profited significantly from an earnout triggered when DJT shares traded above specific levels.

According to a filing by Trump Media, the company determined on April 26 that the performance standard had been met and subsequently issued Trump earnout shares valued at $1.8 billion.

With these earnouts, the former president now owns 114.75 million shares of DJT stock, which amounts to 64.9% of the total outstanding volume.

The earnout shares Trump received are subject to lock-up restrictions, preventing insiders from selling or borrowing against their stock for six months.