Trump Media & Technology Group (NASDAQ:DJT) saw its shares drop by 4% on Tuesday after announcing it had raised over $105 million through the cash exercise of warrants.

The fundraising took place over 12 days ago, starting June 20, shortly after the SEC declared the registration of new shares effective.

This declaration allowed the issuance of millions of new Trump Media shares via warrants, which let holders buy shares at a predetermined price.

While this move generates significant cash — potentially netting around $247 million if all warrants are exercised — it risks diluting the stock's value by increasing the number of shares available, CNBC reports.

Trump Media disclosed an additional $41 million of restricted cash had recently become unrestricted. The company now boasts over $350 million in cash and no debt on its balance sheet.

The stock suffered a prolonged sell-off after Trump, who owns about 65% of the company's shares, was found guilty of 34 counts of falsifying business records in New York.

The stock partially recovered from its decline, although shares fell sharply following Trump's first debate with President Joe Biden.

On Monday, Trump Media announced its inclusion in the Russell 1000 and Russell 3000 indexes, further influencing its market performance.

Price Action: DJT shares were trading lower by 2.80% to $30.84 premarket at the last check on Wednesday.

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