Donald Trump crashes out of the Bloomberg rich list as his ‘Truth’ stock heads back down

Donald Trump, the former president of the United States, has experienced a significant decline in his net worth, leading to his removal from the ranks of the world’s 500 wealthiest individuals, according to the Bloomberg Billionaires Index. This financial setback can be attributed to the nosediving value of his meme stock investment.

Trump previously held a top 300 spot on the Bloomberg index, outranking notable figures such as George Soros, Mark Cuban, Giorgio Armani, Reed Hastings, and Bernie Marcus. However, his net worth has now dropped below the $5.8 billion threshold required to maintain a position on the prestigious list. Forbes’ rich list currently pegs Trump’s total wealth at $4.8 billion, ranking him 659th globally.

The catalyst for this financial downturn is the plummeting value of Trump Media & Technology Group (TMTG), a company in which Trump holds a substantial 58% stake, equating to 78.75 million shares. TMTG merged with Digital World Acquisition Corp. and began trading under the ticker DJT in late March.

Initially, TMTG shares experienced a buying frenzy, reaching an intraday high of $79 on March 26, valuing Trump’s stake at close to $6.3 billion. However, the stock has since plunged by a staggering 53%, closing at around $37 on Monday. This precipitous decline has slashed the worth of Trump’s position to approximately $2.9 billion, resulting in a $3.3 billion loss in just two weeks.

At its peak, the initial buying frenzy propelled TMTG’s market capitalization to an astounding $11 billion, making it more valuable than established companies such as Paramount, Etsy, Hasbro, American Airlines, and Ralph Lauren. Despite this, TMTG is now worth around $5.1 billion, which is still more than 1,200 times its reported revenue of $4.1 million for the previous year, during which Truth Social’s parent company incurred a net loss of $58 million.

Trump’s plunging net worth may be particularly concerning for him, given the recent $454 million judgment against him in a New York fraud case and the $175 million bond he was required to pay while appealing the decision.