Up until now, a lockup provision has prevented Trump from selling his stake in Trump Media. However, this restriction is about to expire, and the value of the shares has dropped by more than 70% from its peak.
Donald J. Trump has a crucial decision to make.
In just 10 days, the former president will be free to sell his shares in Trump Media & Technology Group, the publicly traded parent company that controls Truth Social, the social network that has become his main online communication channel. The clause preventing him from selling his 115 million shares expires on September 19.
Currently, his stake is valued at around $2 billion, a tempting sum considering that Trump only invested a few million in Trump Media, a company he founded just weeks after leaving the White House in early 2021. However, that value is considerably lower than it was in March when Trump Media made its Wall Street debut.
If Trump decides to sell, the repercussions would be both financial and political. A large-scale sale would likely further sink the stock’s value, significantly reducing the worth of whatever Trump has left. Additionally, a sudden drop in the stock price could cause feelings of betrayal among the company’s more than 600,000 shareholders, many of whom are loyal supporters of the former president and active users of the platform.
By: Nestor Castillo, ForAllTechNews Director
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