Shares of Trump Media & Technology Group Corp. soared after former President Donald Trump announced that he would not be selling his shares in the social media company. Trump owns nearly 115 million shares of the company, making his stake worth approximately $1.85 billion based on the current market price. Despite the potential for a significant payout, Trump stated that he does not need the money and has no intention of selling his shares when the lockup provision ends on Sept. 19.
The lockup provision, which prevented insiders from selling shares for six months after the company went public, is set to expire soon, allowing Trump to potentially cash in on his stake in Trump Media. The stock of the company has seen a decline in value since its debut on the Nasdaq in March, when it reached a high of $79.38. Trump created Truth Social as a response to being banned from major social media platforms such as Twitter and Facebook following the Jan. 6, 2021 Capitol riot. The company, based in Sarasota, Florida, has faced financial challenges, reporting a loss of $58.2 million last year with only $4.1 million in revenue.
Despite the struggles faced by Trump Media, Trump remains supportive of Truth Social as a platform for him to communicate his message to the public. He views the platform as a valuable tool for sharing his thoughts and views, describing it as a “great voice” for him. The stock of Trump Media experienced a dip of over 10% following a debate between Trump and Vice President Kamala Harris, but later rallied by 29% and ended the day with an 11.8% increase in share price. The future of the company and its stock performance will likely be closely monitored as Trump considers his options with his significant stake in the company.
Investors and analysts will be watching closely as the lockup provision expiration date approaches, to see if Trump decides to cash in on his shares or continue holding onto them. The company’s financial performance and ability to generate revenue will also be key factors in determining the long-term viability of Trump Media and Truth Social. Despite the challenges faced by the company, Trump’s personal stake and involvement in the platform continue to draw attention and interest from the public and investors alike. The market reaction to Trump’s decision not to sell his shares indicates continued interest and optimism in the future of the company, as it navigates its way in the competitive social media landscape.
