A price floor means ex-president gets bonus even though Trump Media & Technology Group’s stock value has plummeted

Former president Donald Trump qualified for a bonus worth $1.2bn after shares in his social media company remained above a certain value despite falling sharply.

Trump is poised to receive 36m additional shares in Trump Media & Technology Group (TMTG), owner of his Truth Social platform, under an “earn-out” windfall which boosts the paper value of his stake in the business to about $3.7bn.

He was able to receive the bonus if TMTG’s stock traded above $17.50 a share for 20 days out of any 30-day period within the first three years of the firm’s stock market debut – a milestone it reached after closing at $32.57 on Tuesday.

Trump’s shares in his social media company have offered him a financial lifeline as he faces about $500m in legal penalties after being found liable in civil fraud, defamation and sexual abuse cases. While he cannot sell his stock until September due to the terms of a lockup agreement, the shares’ fluctuating value have at times made him one of the world’s wealthiest people on paper.