In just under a week, former US President Donald J. Trump could be 3.2 billion euros richer. Then your social media app Truth Social will go public. The application is currently valued at 5.5 billion euros.

The application is formally separated from the IPO by shareholder vote, the Wall Street Journal reports. The parent company of Truth Social must therefore merge with the so-called SPAC (Special Purpose Acquisition Company, in German: company founded with a special purpose).

However, the shareholder board, made up mainly of Trump's political supporters, is expected to approve the measure.

Cash flow could save Trump personally and politically

The IPO would come at a good time for Trump, reports “Manager Magazin.” The former president currently faces high personal and political expenses.

Trump will have to pay a fine of 412 million euros next week for a lost fraud case. Trump's lawyers have already announced that it will be “virtually impossible” for Trump to raise the corresponding bail in time.

In addition, Trump's campaign team has so far raised much less money than that of the current US president, Joe Biden.

In both cases, Truth Social's IPO would not provide immediate relief. Ultimately, Trump will be forced to retain his 60 percent stake in the company for six months. But the company's high valuation strengthens Trump's credibility with lenders and gives a boost to his political campaign.

Finance and politics seem inseparable in the Trump case

Overall, Trump's implementation cannot be assessed solely on the basis of economic indicators.

“There appears to be an unwritten agreement among tens of thousands of traders that stocks [von Trumps Unternehmen] “The more political momentum Trump has, the higher he should trade,” says Julian Klymochko, who manages a SPAC-focused fund at Accelerate Financial Technologies.

His commitment should be interpreted more as a “political statement and, so to speak, an electoral bet.”