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Shares of Trump Media, commonly called TMTG, tumbled almost 8%
to close at $13.55, putting the value of the company at less
than $3 billion. Trump owns more than half of it.
Trump and other insiders in the company have been unable to cash
in on the highly volatile stock due standard lock-up agreements
that prevent big stakeholders from selling stakes for a set
period after a company becomes publicly traded. TMTG began
trading publicly in March.
Trump owns nearly 115 million shares of the company, according
to filings with the Securities and Exchange Commission. Based on
TMTG's share price early Friday, Trump's holdings are worth, at
least on paper, about $1.6 billion. It's usually not in the best
interest of big stakeholders to even attempt to sell large
tranches of their stock because it could risk a broader
sell-off.
Since going public, shares in Trump Media have gyrated wildly,
often depending on news related to Trump, the Republican
presidential nominee.
One week ago, the company's shares jumped nearly 12% after Trump
said he wouldn't sell shares when the lock-up period lifted. The
stock dipped more than 10% following the debate earlier this
month between Trump and the Democrats' nominee, Vice President
Kamala Harris. In mid-July, shares climbed more than 31% in the
first day of trading following the first assassination attempt
on Trump.
Trump Media & Technology Group Corp. is now worth considerably
less than several months ago. When the company made its debut on
the Nasdaq in March, the shares hit a high of $79.38. Friday's
closing price represents a decline of 83% from that peak.
Truth Social came into existence after he was banned from
Twitter and Facebook following the Jan. 6, 2021, Capitol riot.
Based in Sarasota, Florida, Trump Media has been losing money
and struggling to raise revenue. It lost nearly $58.2 million
last year while generating only $4.1 million in revenue,
according to regulatory filings.
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