Shares of meme stock Trump Media Technology Group (NASDAQ: DJT) fell as much as 33% this week after the company got approval for a dilutive warrant conversion. According to data provided by S&P Global Market Intelligence, shares are trading down 32% for the week as of 2:15 p.m. ET.

Early investors in Trump Media Technology Group have been given the green light to exercise their warrant options, which could raise $247 million for the company and dramatically increase the number of common shares outstanding.

Warrants are long-term options that investors often get as an incentive to fund businesses like the special purpose acquisition company (SPAC) merger that became Trump Media. If those warrants are exercised they will likely be sold immediately, causing downward pressure on the stock.

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Source Fool.com