Trump Media And Technology Group (DJT) To Attract Passive Investments As It Joins The Broad-Market Russell 1000 And Russell 3000 Indexes
This is not investment advice. The author has no position in any of the stocks mentioned. Wccftech.com has a disclosure and ethics policy.
The past few days have proven to be quite auspicious for Trump Media and Technology Group (NASDAQ: DJT), the entity that controls the Truth Social platform. And, this string of good fortune continues to roll along at a moderately clip pace.
To wit, Trump Media and Technology Group announced today that its stock will now be included in the Russell 1000 and Russell 3000 indexes as part of their annual reconstitution. 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.
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Trump Media and Technology Group's inclusion in the Russell indexes opens a pathway for passive liquidity, which can play an important role in taming the stock's elevated volatility.
Meanwhile, as we recently noted in a dedicated post, Trump Media and Technology Group currently expects to receive $69.4 million in proceeds from the cash exercise of its warrants. For the benefit of those who might not be aware, these warrants carry an exercise price of $11.50 per share. As long as the stock trades above this exercise price, it makes financial sense for investors to exercise their warrants in order to obtain the underlying common shares.
The company expects to use these cash proceeds to execute its "business plan, including for working capital, possible acquisitions and other general corporate purposes."
Additionally, $40 million in restricted cash sitting on the balance sheet of Trump Media and Technology Group has now become
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