Truth Social Sold Stock Just Before Trump’s Tariffs Were Announced

Just prior to making a significant announcement regarding an escalation in tariff war, President Donald Trump made a move to allow the sale of his shares in Truth Social. The Trump Media and Technology Group (TMTG) disclosed its intention to sell more than 142 million shares in a filing with the Securities and Exchange Commission late on Tuesday. Among these shares were Trump’s 114-million-share stake valued at around $2.3 billion and controlled by his son, as well as shares held by other insiders and US attorney Pam Bondi.

Although this filing does not guarantee the immediate sale of shares, investors reacted negatively to the news. Share prices experienced an eight percent decline, adding to an overall drop of more than 45 percent throughout the year due to Trump’s escalating trade policies. The timing of the SEC filing, preceding Trump’s tariff announcement, raised suspicions among market participants.

Despite Trump’s previous pledge in September not to sell his TMTG shares, the recent filing suggests a change in plans. The company’s shares being made available for sale have likely caused uncertainty and concern among investors, particularly as the market faces unprecedented economic challenges due to Trump’s policies. While Trump Media dismissed allegations by “legacy media outlets” regarding the filing paving the way for Trump to sell his shares, experts warned that such a move could have drastic consequences for TMTG.

With TMTG reporting a significant loss of $400 million in 2024 against a mere $3.6 million in revenue, the company’s financial stability remains uncertain. The possibility of a mass sale of shares, as indicated by the recent filing, has sparked unease among investors. Analysts like Seth Goldstein from Morningstar emphasized that while the filing suggested the potential for a share sale, it did not confirm if or when such an action would take place.

Ultimately, TMTG’s focus seems to be on facilitating the sale of stock rather than building a sustainable business model that generates substantial revenue. The failure to establish a viable operating structure underscores concerns that the company may be primarily designed to benefit Trump and his associates financially. As University of Florida finance professor Jay Ritter noted, TMTG’s efforts seem to prioritize stock sales over business success, leaving investors wary of the company’s future prospects.