Click Here To View More
Donald Trump recently said he won't sell his stock in Trump Media & Technology Group (DJT). But, starting Thursday, he can sell it. This option wasn't available since the company went public in March.
“I have absolutely no intention of selling,” the former president told reporters last week. “I love it. I use it as a method of getting out my word.”
DJT shares jumped by double digits on Friday after his statement. But, the stock has since dropped about 10% in six days. It now trades just below $16 in early trading Wednesday.
Stakeholders, including the former president, face a six-month lockup period before selling. This period ends on Thursday. Trump could still make money in late April when the stock hit a milestone, securing him an extra $1.2 billion.
Yahoo Finance's Ben Werschkul explained the lock-up period's purpose. It's to protect the company and keep it stable before founders can sell.
“If I sell, it wouldn’t be the same, and I can understand that,” Trump said on Friday. He knows his stake has been "whittled down" in recent months.
Trump owns about 60% of DJT. At current levels, Trump Media has a market cap of about $3.3 billion. This makes Trump's stake worth around $2 billion. Right after going public, Trump's stake was worth over $4.5 billion.
Trump Media went public on the Nasdaq in late March after merging with Digital World Acquisition Corp. The stock has been volatile since, moving with the news cycle.
In June, the stock jumped (then fell) after Biden stumbled in his first debate with Trump. Biden dropped out of the race a month later.
Since Biden's announcement, shares have stayed under pressure. Vice President Kamala Harris is leading in polls. The stock plummeted to new lows after last week's debate, as bets on a Harris presidency increased.
In May, Trump was found guilty on all 34 counts of falsifying business records. This verdict sent shares down 5% the day after. His sentencing was recently delayed until Nov. 26.