DJT Stock Tumbles as Trump Media Races Against a $1 Billion Deadline

Trump Media & Technology (NASDAQ:DJT) is facing major headwinds this year, and the next few weeks will be crucial for the company. Its stock has tumbled and is hovering near its all-time low as it races to meet a $1 billion debt repayment deadline.

Trump Media Has a November 30 Deadline

President Donald Trump’s media company is facing some major headwinds as its stock hovers near a record low. It has a November 30 deadline to repay up to $1 billion of its convertible debt that it sold last year to fund its Bitcoin (CRYPTO: BTC) accumulation.

The company’s main challenge is that its shares have plunged and the value of its Bitcoin holdings has continued to fall. After peaking at $87,300 in October, Bitcoin has slumped to $66,000, and the decline may continue as US Treasury yields rise and the Crypto Fear and Greed Index falls.

As a result, lenders who gave it the funds and aimed to convert their notes to stock at $34.72 are deeply out of the money. As such, a potential debt redemption of $1 billion would further strain the company’s finances and force it to part with some of its crypto holdings. Trump Media holds 15,649 coins currently valued at $1 billion. It has ruled out selling shares to repay its debt.

Trump Media faces other challenges. Democrats, who have retaken the House of Representatives and the Senate, are likely to investigate the company. One key issue is its decision to launch a service that gives high-frequency traders earlier access to Trump’s posts than other users get.

The company’s core product is struggling, with SimilarWeb (NYSE:SMWB) data showing that traffic to its website dropped by 22% in October from the previous month. As a result, there is a likelihood that the company’s advertising traffic will continue falling, especially now that Trump’s approval rating has dropped.

DJT Stock Technicals Suggest it Has More Downside

The daily chart shows that Trump Media stock has been in a steep sell-off and is hovering near its all-time low. It has already dropped below the important support level of $6.80, its lowest level in June.

The stock has slumped below the 50-day Exponential Moving Average (EMA) and the Supertrend indicator. Therefore, with a debt deadline looming, there is a risk that the stock will continue falling, potentially to the psychological level of $3.

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