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Donald Trump is now in a position to sell shares in the parent company of Truth Social, valued at nearly $2 billion, but he appears likely to hold onto them for the time being.
The Republican nominee and significant shareholders in Trump Media & Tech Group were released from a lockup agreement at 4 PM on Thursday. This agreement had prevented them from selling their stock for six months post-offering. The lockup initially took effect in March when the company went public after a merger, contingent on shares trading above $12, according to a report from Forbes.
Trump controls nearly 57 percent of all shares in the company, which is traded under the ticker DJT. His shares are valued at approximately $1.7 billion.
During a news conference near Los Angeles last week, Trump made it clear that he has no intentions of selling his shares. “A lot of people think that I will sell my shares, you know, they’re worth billions of dollars, but I don’t want to sell my shares. I don’t need money,” he stated.
He also expressed his fondness for Truth Social, stating, “I love it. I use it as a method of getting out my word.”
On Thursday, just before the conclusion of the lockup agreement, DJT stock prices declined by nearly 6 percent, trading at $14.69, slightly above the $12 threshold set by the lockup terms.
From a broader perspective, the share prices of DJT have been indicative of Trump’s political standing. When trading commenced, the shares were valued at $57.99 on their first day.
However, stock prices have significantly dipped since Vice President Kamala Harris declared her intention to run for president in the 2024 election at the end of July. On July 21, the day of her announcement, the shares averaged around $35, which marks a 42 percent drop over approximately two months.
The decline continued earlier this week when shares fell nearly 4 percent following the arrest of Ryan Wesley Routh, 58, for allegedly aiming an SKS-style rifle toward the bushes at Trump National Golf Club in West Palm Beach, Florida, while Trump was present.
Following a recent debate, the company’s stock suffered another drop. Reports indicated that DJT’s price had reached its lowest point since beginning trading on the Nasdaq stock exchange back in March. This latest drop occurred just as Trump gained the liberty to sell his shares.
In conclusion, while Donald Trump is free to sell his shares in his media company, his statements reflect a decision to retain his ownership. The fluctuation in stock prices has mirrored the political landscape, especially with the advent of new challengers entering the race for the White House.
Source: Forbes