The owner of Donald Trump’s social networking company, Truth Social, claimed Monday that it had cooperated with a Financial Industry Regulatory Authority (FINRA) investigation into its blank-check transaction
Trump Media and Technology Group (TMTG) (DJT.O) stated that the inquiry from FINRA, the self-regulator of Wall Street, was primarily related to trading before the announcement of the deal with Digital World Acquisition Corp. and should not be interpreted as evidence of misconduct.
Since going public, TMTG has experienced a turbulent voyage. On their Nasdaq début on March 26, an army of Trump supporters and speculators purchased its shares, sending them as high as 59% in value. However, those gains have since been reversed, leaving the company with a market capitalization of nearly $7 billion.
A majority stake in TMTG is held by former president Trump, the Republican candidate in the presidential election scheduled for November 5. He utilizes Truth Social frequently, an organization that has attempted to establish itself as a sanctuary for dissenting opinions.
Following the dismissal of its auditor, BF Borgers, whom the Securities and Exchange Commission charged with “massive fraud” earlier this month, TMTG postponed the release of its quarterly report last week.
In an earlier earnings report on Monday, the organization revealed a more substantial loss for the initial quarter as a result of specific non-cash expenses accrued before the completion of its merger.
Comparatively, the three-month net loss ended March 31 at $327.6 million, up from $210,300 in the same period last year.
According to TMTG CEO Devin Nunes, a significant portion of “merger-related expenses” were eliminated.
According to the company’s statement as of April 29, retail investors comprise the overwhelming majority of the 621,000 shareholders.
