Topline
Shares of Trump Media closed at a new record low Wednesday ahead of its lockup period expiring tomorrow, allowing former President Donald Trump and major other shareholders to sell their stakes—though he’s vowed not to sell his shares in the Truth Social parent.
The former president previously said he has “absolutely no intention” of selling his shares in the ... [+]
Key Facts
Trump Media & Technology Group Corp. fell over 3% to $15.64, the second-straight day the stock closed at a record low after falling to $16.14 on Tuesday.
Trump will be able to offload his roughly 60% stake in the company on Thursday following the expiration of a lockup period, which prevents some shareholders of freshly public companies—such as those who own 5% or more of shares or who serve in high-level management roles—from selling their shares.
A lockup period ends for Trump Media if one of three requirements is triggered, according to a Securities and Exchange Commission filing: The end of the stock’s first six months of trading as its own entity, Trump Media shares trading above $12 for any 20 of 30 trading sessions beginning Aug. 20 or a transaction that allows all shareholders to sell their holdings at the same price.
The value of Trump’s stake—totaling 114.75 million shares—decreased from $2 billion Friday to $1.7 billion as of Wednesday’s close.
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Surprising Fact
Big Number
80.2%. That’s how much the value of Trump Media shares has decreased since hitting a record high of $79.38 on March 25.
Tangent
A Delaware court ruled in favor of an early Trump Media investor Tuesday, indicating the company had breached a contract with Patrick Orlando. Orlando was awarded about 800,000 more shares of the company as part of the ruling, which sent Trump Media shares down 6.6%.
Key Background
Since going public through a reverse merger with a special purpose company in March, some shareholders have been prohibited from selling their shares in a lockup period. The earliest possible date for the period ending was set for Sept. 19, if Trump Media’s share price remained above $12. The stock has been volatile in recent weeks and continues to fall in value since reaching a near $10 billion valuation in May. Trump Media shares have both surged and fallen during Trump’s campaign, jumping as much as 13% after he debated President Joe Biden and declining 10% after debating Harris.
Forbes Valuation
Trump has a net worth of $3.9 billion, according to our latest estimates. His net worth swelled to over $8 billion from about $4.1 billion when Trump Media went public.