Trump’s $2.3B social media stake could be sold off, leading to drop in Trump Media stock on ‘Liberation Day’

Former U.S. President Donald Trump is considering selling his stake in Trump Media & Technology Group (Nasdaq: DJT), which is valued at over $2 billion. The Florida-based company is known for its Truth Social platform, a platform frequently used by Trump, and recently announced a partnership with Crypto.com for investment products. Trump, through the Donald J. Trump Revocable Trust, currently holds 114.75 million shares in the company.

The SEC filing on April 1 indicates that Trump’s shares could potentially be sold off, with estimates placing their value between $2.2 billion and $2.3 billion. Other shareholders, such as U.S. Attorney General Pam Bondi and a Cayman Islands-based group called YA II PN LTD, may also choose to sell off their Trump Media shares. Collectively, more than 134 million shares held by Trump and other shareholders could be put up for sale.

In addition to existing shares, Trump Media plans to issue over 8 million new stock shares as detailed in the SEC filing. However, the stock performance of Trump Media has faced challenges, with shares falling more than 6% in Wednesday trading and declining by over 44% since the beginning of the year according to Google Finance.

The revelation of Trump potentially divesting his stake in TMTG coincides with his intention to announce new tariffs on foreign countries and goods. Notably, individuals from Trump’s administration, including FBI Director Kash Patel and Education Secretary Linda McMa, maintain ties to Trump Media. Despite these ties, Trump appears to be contemplating a significant restructuring of his personal investment in TMTG.

The decision to sell off shares in Trump Media could represent a strategic shift for the former president, given the platform’s association with his personal brand and communication initiatives. The potential sale of shares by Trump and other significant shareholders underscores the evolving landscape of media and technology investments. As Trump navigates the complexities of divestment, the repercussions of this decision are likely to reverberate within the industry and the broader market.