Why Trump May Struggle to Cash in on Truth Social’s Billions

Donald Trump may face significant challenges when it comes to cashing in on his $2.3 billion stake in Truth Social, according to a recent report. The former president is currently prohibited from selling or borrowing against his shares in the Trump Media & Technology Group, which operates Truth Social, until September 25.

However, even after this deadline passes, difficulties may persist. CNN highlights that liquidating his stake could cause the share price to plummet, as noted by Michael Ohlrogge, an associate professor of law at New York University School of Law.

“If Trump were to sell a large number of shares and the stock price tanks, to some degree he would be burning his own supporters who bought the stock,” finance professor Jay Ritter from the University of Florida explained to CNN. He further suggested that such a scenario could be politically detrimental for Trump.

The financial outlook for Truth Social is already troubling, as the platform has seen a steep decline in its share price. Since launching in February 2022, the company has lost 70% of its value since March. Recently, shares dipped by 4%, reaching less than $20 for the first time since the company was formed following a merger earlier this spring.

Audience engagement on the platform has also suffered drastically, with June revealing some of the lowest visitor numbers to date. That month recorded just over 2.11 million unique visitors, marking a 38% drop compared to the same timeframe last year. This decline represents the second-lowest traffic level since Truth Social’s inception in June 2022, when it had attracted 1.8 million visitors. For context, the platform saw over 3.2 million visitors during its initial launch.

According to Howard Polskin, a media analyst with TheRighting, the dropping audience figures reflect a growing rejection of the inflammatory rhetoric often associated with Trump’s platform and his political circle. “The diminishing audience levels for Truth Social suggest a rejection of the harsh rhetoric expressed by the ex-president and his political allies that is one of the hallmarks of the two-year-old platform,” he commented to The Guardian last month.

Furthermore, Trump’s financial situation has also been questioned. April’s financial disclosures to the Federal Election Commission revealed that he earned less than $201 from Truth Social, raising eyebrows regarding the platform’s profitability.

As the 2024 presidential race heats up, Trump may be looking to finagle some financial gains from Truth Social. Recent national polls indicate that Vice President Kamala Harris is leading Trump by 3.5 points as of August 29. This shift in public opinion follows a significant momentum change for Harris after the Democratic National Convention.

A USA TODAY/Suffolk University poll released on August 29 shows Harris with a 48% preference, compared to Trump’s 43%. This marks an eight-point turnaround from June, when Trump held a slight lead over Biden.