Former President Donald Trump announced that he is not selling shares in his social media company, Trump Media & Technology Group, which led to a significant increase in the company’s stock prices. Trump, along with other insiders in the company, will be able to sell shares as early as next week when lock-up restrictions are set to expire. Despite speculation about his departure, Trump confirmed that he is not leaving and expressed his love for the company during a press conference.
Trump’s comments caused a 25% increase in the company’s share price on Friday afternoon before trading was halted due to volatility. By late afternoon, Trump Media’s stock was up by 19%. The expiration of the lock-up period is set for September 19, allowing Trump to sell shares if the closing price remains above $12. However, experts believe that selling off all or most of his shares could potentially crash the share price. It remains unclear whether Trump is considering selling a smaller portion of the company.
As the dominant shareholder in Trump Media, owning 57% of the outstanding shares, Trump’s stake of 114.75 million shares was valued at $1.8 billion based on Thursday’s closing price. The company’s value has recently plummeted due to concerns about the expiring lock-up restriction and polls indicating a tight race for the White House. Following Trump’s underwhelming performance in a debate earlier in the week, the stock hit record lows. Despite these challenges, Trump’s decision to retain his shares has significantly impacted the company’s stock prices.
The speculation surrounding Trump’s potential share sell-off has added to the volatility of Trump Media’s stock. Analysts suggest that if Trump were to sell a large portion of his shares, it could potentially lead to a crash in the share price. The company’s value has already been fluctuating due to various factors, including political uncertainties and market conditions. Trump’s public statements and actions continue to influence investor sentiment and the company’s financial performance.
Investors will be closely monitoring the situation as the lock-up restrictions are set to expire, potentially allowing Trump and other insiders to sell their shares. Trump’s decision to retain his shares has reassured some investors, leading to a temporary surge in the company’s stock prices. However, the future remains uncertain, as the company faces ongoing challenges and uncertainties in the market. Trump’s leadership and strategic decisions will continue to impact the company’s performance and shareholder value in the coming weeks.
