# How Can Truth Social be worth $6 Billion? {Trump Media & Technology (DJT)}

**URL:** <https://boards.straightdope.com/t/how-can-truth-social-be-worth-6-billion-trump-media-technology-djt/999202>\
**Category:** In My Humble Opinion\
**Tags:** trump\
**Created:** [March 22, 2024, 1:23pm UTC](https://boards.straightdope.com/t/how-can-truth-social-be-worth-6-billion-trump-media-technology-djt/999202 "2024-03-22T13:23:05Z")\
**Posts on this page:** 1\
**Showing post:** 27

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**Author:** ![Moriarty](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/moriarty/32/49_2.png) [@Moriarty](https://boards.straightdope.com/u/Moriarty)\
**Post date:** [March 22, 2024, 7:55pm UTC](https://boards.straightdope.com/t/how-can-truth-social-be-worth-6-billion-trump-media-technology-djt/999202/27 "2024-03-22T19:55:33Z")

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I posted this elsewhere, but it’s my understanding that really rich people don’t sell their stock to generate income. Rather, they use the valuation of those stocks to get loans, which they then repay at a pittance of interest when compared to any income tax that would be due when liquidating the stock.

> [@](#):
>
> The most common way to do this is a Securities Backed Line of Credit (SBLOC), where you take a loan against the value of your stock portfolio. You could think of this as a Home Equity Line of Credit where your stocks are the collateral rather than your home. An SBLOC has a few benefits that are quite appealing, like flexible repayment schedules, easy approval (with little or no cost) and, in many cases, low-interest rates.

> **[How The Rich Use The Buy, Borrow Die Strategy To Avoid Large Tax Bills](https://www.forbes.com/sites/davidrae/2022/07/14/how-the-rich-use-the-buy-borrow-die-strategy-to-avoid-large-tax-bills/amp/)**
>
> "Buy, Borrow, Die" and has become a way for the uber-wealthy, with tax planning experts by their sides, to fund their lifestyles while minimizing their taxes along the way.

So donald doesn’t have to sell his stock to take advantage of its value.

And _of course_ he is using magical thinking to value the company.

But will any lender accept the valuation? Unless it’s the Bank of North Korea, I have a hard time believing that’s possible.

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