Former President Donald Trump's media company, Trump Media, is looking to raise up to $1 billion by selling shares to hedge funds and family offices to invest in the TRUTH Social network.

Sources connected to the lawsuit revealed that Trump Media is now looking to raise another $1 billion at a valuation of close to $3 billion, to reflect the rise in Digital World's stock after Trump supporters and day traders bought the shares.

The process of developing TRUTH Social runs parallel to the merger of Trump Media & Technology Group and Digital World Acquisition Corp through the New York Stock Exchange. And, if this merger is completed it will earn Trump Media about $293 million.

The deal valued Trump Media at $875 million, including debt.

Digital World shares were valued at ten dollars each in the deal with Trump Media, which is now seeking to secure a so-called private investment in public equity (PIPE) that would value Digital World shares closer to their last price

The sources added that Digital World shares can be valued based on a 20% discount from its ten-day volume-weighted average price.

Trump Media and Digital World have asked investors to finalize their PIPE commitments by mid-December.

TRUTH Social is scheduled for a full launch in the first quarter of 2022, and is the first of three phases of the Trump Media plan, followed by a subscription video service called TMTG+ that will feature entertainment, news and podcasts.