On Monday, the stock value of the company behind Truth Social, owned by Donald Trump, experienced a 15% decrease. This decline is part of a continuing trend since its initial public offering (IPO), triggered by the announcement that a significant number of additional shares, possibly including all of Trump's holdings, may be sold in the near future.
Since its introduction to the market on March 26 through a merger with Digital World Acquisition Corp, Trump Media & Technology Group's shares have seen considerable volatility. The fluctuation is attributed to a mix of staunch supporters of the former president and investors betting against the stock, deeming it overpriced.
The company's shares have plummeted nearly 60% from their debut, dropping from an opening day high of $70.90 to $27.56 this Monday. This downturn followed a disclosure indicating the potential sale of up to 146.1 million shares, which includes a portion or the entirety of Trump's 114.8 million shares, split between his current holdings and additional shares contingent on meeting specific performance targets.
An attorney, speaking to Reuters anonymously last week, mentioned that such a filing after an IPO is routine and should not necessarily be interpreted as a significant event. This process is a standard procedure for allowing shareholders to sell their locked-up shares after a set period.
Amidst these financial developments, Trump is currently facing a trial in Manhattan over allegations of hush money payments, to which he has responded with a plea of not guilty. The legal proceedings coincide with his potential candidacy for the Republican nomination in the upcoming 2024 presidential election.
In addition to Trump's shares, the filing revealed another 21.5 million shares might hit the market if certain warrants issued during the IPO are exercised.
