Donald Trump said he wouldn’t sell his shares in Truth Social, but technically he can do so starting today.
Donald Trump recently said he would not sell his shares in Trump Media & Technology Group (DJT). But starting Thursday, he will have that option, something that has not been available since the social media company went public in March.
“I have no intention of selling,” the former president told reporters at a news conference last week. “I love it. I use it as a method to make myself heard.”
DJT shares rose double digits on Friday following its disclosure, though the stock has recently given back those gains, falling more than 10% over the past six days to trade just below $15 in early trading Thursday.
Shareholders, including the former president, are subject to a six-month lockup period before selling or transferring shares. That lockup period is set to expire on Thursday, though Trump was still able to pocket some cash in late April when the stock hit a milestone that secured him an additional $1.2 billion.
As Yahoo Finance’s Ben Werschkul detailed, the purpose of a lockup period is to protect the interests of a newly public company and allow it to preserve stability before its founders can cash out.
“If I sell, it wouldn’t be the same, and I can understand that,” Trump said Friday, adding that he knew his stake had “shrunk” in recent months.
Trump maintains a more or less positive stance 60% interest At DJT, Trump Media has a market cap of roughly $3.3 billion at current levels, giving the former president a stake of about $2 billion. Just after the company’s public debut, Trump’s stake was worth just over $4.5 billion.
Trump Media went public on the Nasdaq in late March after… merging with special purpose acquisition company Digital World Acquisition Corp. But the stock has had a bumpy ride since then, with shares swinging between highs and lows as moves have typically been tied to a volatile news cycle.
In June, stocks rose (and then fell) after current commander-in-chief Joe Biden stumbled in his first 2024 presidential debate with Trump. Biden dropped out of the presidential race a month later.
Since Biden’s announcement, stocks have remained under pressure as Vice President Kamala Harris, the Democratic presidential nominee, warms up to Trump. in the latest survey. More recently, stocks fell to new lows following last week’s debate as bets on a Harris presidency rose.
In May, Trump was found guilty on 34 counts of falsifying business records with the intent to influence the 2016 presidential campaign, a verdict that sent shares down 5% the day after the conviction. His sentence was Recently delayed until November 26th.
Shares have fallen about 60% since the company’s public debut in late March. The stock remains near the low end of its 52-week range and far from its all-time high of just over $79 per share.
Trump founded Truth Social after he was banned from major social media apps like Facebook (META) and Twitter, the platform now known as X, following the Capitol riots on January 6, 2021. Trump has since been reinstated on those platforms. He officially returned to X in mid-August after a roughly year-long hiatus.
But as Truth Social attempts to compete with traditional social media operators, the company’s fundamentals have long been in question.
Last month, DJT reported Second-quarter results showed a net loss of $16.4 million, about half of which was due to expenses related to the company’s SPAC deal. The company also reported revenue of just under $837,000 for the quarter ended June 30, a year-over-year drop of 30%.
Alexandra Channel is a senior reporter at Yahoo Finance. Follow her on X @allie_canal, LinkedIn, and email her at alexandra.canal@yahoofinance.com.
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