Trump Media shares fall after POTUS kicks off sale of $2.3bn stake

Shares of Trump Media & Technology Group (TMTG) nosedived on Wednesday after a regulatory filing revealed plans for a large stock sale, including the potential sale of US President Donald Trump’s $2.3 billion stake. The update comes against the backdrop of Trump’s upcoming announcement of new trade tariffs, which he has branded as “liberation day” policies.

TMTG, which operates the social media platform Truth Social, saw its stock drop 8% following the US Securities and Exchange Commission (SEC) filing late Tuesday. 

The document outlined plans to sell more than 142 million shares, including Trump’s 114 million shares, held in a revocable trust controlled by his son, Donald Trump Jr.

Other major shareholders, including US Attorney General Pam Bondi, TMTG Chairman Devin Nunes, and Yorkville, a Cayman Islands-registered company, are also set to offload a combined 134 million shares. In addition, TMTG is issuing 8.4 million new shares to increase the available trading stock.

DJT stock continues plummeting ahead of ‘Liberation Day’

According to Yahoo Finance data, Trump Media shares, trading under the ticker symbol DJT, have already plunged over 44% year-to-date. The decline could be attributed to concerns over President Trump’s aggressive trade agenda and the impact of tariffs on the US economy.

On Wednesday, Trump is scheduled to deliver a speech in the White House Rose Garden to announce new “reciprocal” tariffs on foreign imports. The announcement will be closely watched by both domestic and international markets, with fears that the new levies could strain economic relations with US trading partners.

Trump’s decision to register his shares for sale directly contradicts a statement he made months before he won the US Presidential elections. Last September, the stock surged after he declared he had no intention of selling his stake. 

That day, trading was temporarily halted by Nasdaq due to excessive volatility. Trump later accused Nasdaq of working in coordination with the SEC, writing on Truth Social: “What right do they have to do this? They have done it twice today. What’s going on?”

Company defends filing against sell-off concerns

TMTG’s management has attempted to downplay market unrest that Trump or other insiders are planning a stock sale. In a public statement, the company bashed “legacy media outlets” for mischaracterizing the SEC filing.

“To be clear, these shares were already registered last June on an S-1 form, and today TMTG submitted a routine filing that re-registers them on an S-3 form in order to keep the Company’s filings effective. In fact, there currently is no open window for any affiliate to sell shares,” the company claimed.

The prospectus admitted that a stock sale by insiders could negatively impact public shareholders, with insiders profiting due to lower initial purchase prices. Still, it warned that the market could see a decline in share value if the selling pressure increases.

“The sale of the Resale Securities being offered pursuant to this prospectus, or the perception that these sales could occur, could result in a significant decline in the public trading price of our Common Stock,” the document concluded.

TMTG could lose more investors in the coming months

Trump Media stock has been known for its volatility since going public through a special purpose acquisition company (SPAC) merger last year. Shares are currently down nearly 70% from their post-merger highs.

Still, the stock remains a popular investment among Trump supporters, many of whom are individual investors rather than institutional funds. In October 2024, TMTG reported that it had approximately 650,000 shareholders, largely made up of retail investors. The company disclosed that only around 2,100 investors owned more than 5,000 shares, and fewer than 1,000 held over 10,000 shares.

At the time of Wednesday’s US open market session, shares were priced at approximately $19, giving Trump’s trust a theoretical valuation exceeding $2 billion.

On Monday, TMTG became the first company to list on the New York Stock Exchange’s new Texas platform, although its primary listing remains on Nasdaq.

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