Donald Trump will become the first former president to stand criminal trial today, and you could say his stock is tanking. Also, in the markets, his stock is literally tanking, as shares of Trump Media & Technology Group (DJT), which owns Truth Social, continue to decline.

Trump Media, which went public via a SPAC merger a few weeks ago, initially saw a surge in value, but has since experienced a large drawdown. On Monday, shares opened down around 15% from Friday’s close. As of late Monday morning, the stock was hovering just north of $27 a share. Shares had topped out at more than $66 during the week they went public. As such, they’ve lost around 60% of their value since their peak.

While the kickoff of Trump’s trial likely isn’t helping DJT share prices, the main catalyst driving values down is the company’s announcement that it is issuing new shares. Specifically, Trump Media is offering an additional 21.5 million shares, increasing the total by around 15%. Thus, the new issuance is a sign to potential shareholders that their investments could be diluted, likely leading to the battering in the market.

Still, the company is losing a lot of money, and issuing new shares is a way to tap into some much-needed capital. As detailed in earlier filings, Trump Media generated only $4.1 million in revenue during 2023, against losses of more than $58 million.

This shouldn’t necessarily be news to investors, though, as the risks associated with DJT stock—including those related to Trump himself—were outlined in the company’s own filings to the Securities and Exchange Commission (SEC). What remains to be seen is whether today’s drawdown is temporary due to the influx of new stock or whether there will be a lasting impact from seeing the former president—and majority DJT shareholder—on trial.