Shares of Donald Trump’s social media company slumped 15% on Monday, extending losses since its IPO, after the corporate said it could sell hundreds of thousands of additional shares in coming months, including the previous president’s entire stake.
Trump Media & Technology Group, which operates Truth Social, has been volatile since its market debut on March 26, attracting each loyal fans of the previous president together with short-sellers who see the stock as wildly overvalued.
The shares have already fallen nearly 60% because it first went public after a blank-check merger with Digital World Acquisition Corp., peaking on its first day at $70.90.
Trump Media & Technology Group, which operates Truth Social, has been volatile since its market debut on March 26 FellowNeko – stock.adobe.com
Shares were down nearly 16% at $27.56 on Monday.
Monday’s filing is taken into account standard after an organization’s initial public offering.
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It showed a possible sale of 146.1 million shares, including Trump’s stake of 114.8 million shares, divided between the 78.75 million he currently owns and a further stake he could receive if certain performance-based measures are achieved.
“It’s price noting that in the event that they put up this registration statement for Trump shares, I wouldn’t take as a signal of anything,” a lawyer told Reuters on background last week.
“It’s completely normal to place that up on your stockholders, even once they’re locked up for a yr,” the lawyer said.
Monday’s filing showed a possible sale of 146.1 million shares, including Trump’s stake of 114.8 million shares. REUTERS
Trump, the presumed Republican nominee for president within the November 2024 election, is on trial in a Manhattan court related to hush money payments to a porn star. He has pleaded not guilty.
The filing also listed a further 21.5 million shares that could possibly be sold upon the exercise of certain warrants issued when the corporate went public.
