Trump’s trust plans to sell around $2.3 billion in Truth Social stock

US President Donald Trump’s social media company, Trump Media & Technology Group (TMTG), has recently taken a significant step towards potentially selling a substantial amount of its stock. Through a filing with the Securities and Exchange Commission (SEC), TMTG has signaled its intention to allow the sale of approximately 115 million shares of its stock from Trump’s trust. With the potential value of these shares estimated to be over $2.3 billion based on recent prices, this move could have significant financial implications.

The Donald J. Trump Revocable Trust, managed by Donald Trump Jr., currently holds all 114,750,000 shares that are included in the filing. While the filing does not definitively state whether or when Trump’s shares will be sold, it does point towards a potential strategy to capitalize on the company’s stock value.

News of the SEC filing had an immediate impact on Truth Social’s stock performance, with shares declining by 6.5% in early trading to $18.93 per share. This drop further compounds the stock’s overall loss of more than half its value since Trump assumed office in January. If all registered shareholders decide to sell their shares, there is a possibility of significantly increasing the public float, which could result in a notable dilution of the existing shares’ value.

It is interesting to note the timing of this filing, occurring shortly after Newsmax, a conservative media entity, experienced a surge in its stock price following its public listing. Newsmax saw its stock price jump from $10 to $233 in just two days, indicating a high level of investor enthusiasm for right-leaning media platforms. It is possible that Truth Social is seeking to leverage a similar wave of investor interest in this space.

While Trump has not yet publicly communicated any immediate plans to sell his shares, the SEC filing now grants his trust the flexibility to proceed with a sale at any time. This development will be closely monitored by investors to assess the potential implications for Truth Social’s stock performance in the near future. As the situation continues to unfold, it remains to be seen how Trump’s decision regarding the sale of his shares will shape the trajectory of Truth Social’s financial standing moving forward.