Ahead of its long-awaited Nasdaq debut, shares of Donald Trump's media and technology company, Trump Media & Technology Group (TMTG), soared nearly 20 per cent before the opening bell on Tuesday. This marks a major milestone for the company, which has been in the spotlight since its merger announcement with a blank-check firm over two years ago.

TMTG, the parent company of Trump's preferred social media platform, Truth Social, is poised to be valued at up to $8.71 billion based on premarket trading prices. Trump's majority stake in TMTG is now estimated to be worth close to $4 billion, although lock-up restrictions for six months could limit his ability to sell or leverage his holdings.

Despite facing legal challenges and financial pressures, including multiple criminal trials and fundraising difficulties for his campaign and legal expenses, Trump's media venture appears to be gaining traction. A recent ruling pausing New York state authorities from seizing his assets has provided some financial relief, allowing him to focus on building his campaign war chest and maintaining his real estate empire.

The merger deal will infuse $300 million in cash into Truth Social, which reported operational losses of $10.6 million in the first nine months of 2023. TMTG's stock has swiftly become one of the top 15 most actively traded shares on the Nasdaq, highlighting investor enthusiasm for Trump's media venture.

Moreover, TMTG offers supporters of Trump an opportunity to wager on his potential return to the political arena. Shares of shell company Digital World Acquisition, which facilitated the merger, have surged this year, underscoring investor optimism surrounding Trump's resurgence.

However, some cautionary notes have emerged within investor circles. A Reddit user on the "wallstreetbets" forum warned about the hype surrounding Trump's media venture potentially overshadowing concerns such as weak fundamentals and substantial dilution. There's also speculation about Trump potentially reducing his stake in Truth Social depending on the outcome of his presidential bid.

The merger between Digital World Acquisition and Trump's company, finalized in October 2021, has not been without controversy. The US Department of Justice has launched investigations into the deal, and last year, Digital World settled a case with the US securities regulator over inaccurate disclosures.

Despite these challenges, shareholders recently voted in favour of the merger, following regulatory approval. The surge in TMTG's shares reflects growing investor optimism as the company prepares for its Nasdaq debut, signalling a new chapter for Trump's media aspirations.

(With Reuters inputs)