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Trump Media and Technology Group (DJT), the parent entity of the Truth Social platform, is currently brimming with fresh liquidity that augurs well for its ambitious plans to launch a new live TV streaming platform and its own content delivery network (CDN).
We reported on the 21st of June that Trump Media and Technology Group expected to receive $69.4 million in proceeds from the cash exercise of its warrants. Today, in a new filing with the SEC, the company has disclosed that it managed to raise 51 percent more funds relative to its initial expectations, to the tune of $105 million.
After factoring in $41 million in restricted cash that recently became unrestricted, the company's cumulative cash balance as of the 01st of July swelled to $350 million.
Trump Media can now start to aggressively deploy its cash-rich coffers to pursue an ambitious growth-focused agenda. Back in May, the company had noted that it was done with the research and development phase of its new live TV streaming platform and that it would soon begin scaling up its own content delivery network (CDN). In the first phase, Trump Media and Technology Group plans to introduce live streaming to the iOS, Android, and web versions of the Truth Social platform. In the second phase, the company intends to launch a dedicated OTT streaming app for smartphones and tablets, and then release a version of the app for smart TVs in the third phase.
In a related development, Trump Media and Technology Group announced this week that its stock will now be included in the Russell 1000 and Russell 3000 indexes as part of their annual reconstitution, paving the way for the inflow of passive liquidity into its shares. Do note that a stock's inclusion in the Russell 3000 index automatically qualifies it for inclusion in the large-cap Russell 1000 index, the small-cap Russell 2000 index, and a number of related growth- and value-oriented indexes. As an indication of the importance of this development, consider the fact that around $9.1 trillion in assets are benchmarked against Russell's U.S. Indexes.
