Trump Media saw a significant drop in stock price on Wednesday, falling about 5% after the company disclosed in a securities filing the possibility of major stock sales by insiders, including the president’s trust.
The parent company of Truth Social revealed in a filing dated April 1 that it could sell approximately 8.4 million sharesof common stock tied to existing warrants from its IPO. Additionally, the company noted that insiders and major stakeholders could sell up to 134 million shares “from time to time,” including more than 114 million shares held by the Donald J. Trump Revocable Trust.
Despite the filing, Trump has previously stated that he does not intend to sell his stake in the company. His son, Donald Trump Jr., manages the trust. However, the filing warned that such sales—or the possibility of them—could lead to a significant decline in the public trading price of the stock. The prospectus noted that the available shares for resale equate to 129.2% of the company’s public float, which is the total amount of stock currently available for trade.
In a statement, Trump Media denied that insider sales were imminent, calling media reports misleading. The company clarified that the shares were already registered last June and that the filing was simply to re-register them to keep their filings effective. The company emphasized that no affiliate is currently allowed to sell shares.
Trump Media’s stock has been volatile since its public debut through a merger with a special purpose acquisition company (SPAC) last year. It has fallen roughly 70% from its post-merger highs. On Wednesday morning, shares were trading at about $19 per share, putting the trust’s stake at a notional value of more than $2 billion.
The company’s business, however, remains much smaller than other public social media firms. With less than $4 million in total sales in 2024 and a net loss of $401 million, Trump Media has struggled financially. The company also revealed plans to expand into financial services this year.
