Former President Donald Trump made a bold statement on Friday. He declared that he “absolutely” will not sell his shares in the Trump Media & Technology Group. This announcement comes as his opportunity to sell approaches.
During a press conference at his golf course near Los Angeles, Trump explained, “The reason I built it is because I don’t want to have my voice shut down.” He emphasized that many believe he will sell his shares, which he claims are worth billions. However, he insists, “I don’t need money.”
Trump holds a significant stake in the company behind his right-wing social media platform, Truth Social. Currently, his shares are under a six-month lockup period, which could end as soon as September 20. This depends on the stock staying above $12 for 20 trading days starting from August 22. If the stock dips below $12, he won’t be able to sell until September 25.
Once the lockup ends, Trump could sell his 114.75 million shares, which represent about 60% of the company’s outstanding stock. If he sells, he could make over $2 billion, depending on the stock price.
On Friday, Trump’s comments caused a surge in stock prices. Trump Media stock rose 25%, reaching $20 per share for the first time since late August. After his remarks, the stock jumped by about $4 per share.
John Rekenthaler, vice president of research at Morningstar, described Trump Media as an “affinity stock.” This means its value is tied to public perception of Trump rather than its actual business performance. He warned that if Trump loses the presidential election in November, the stock could plummet.
The company has acknowledged in regulatory filings that its success relies heavily on Trump’s popularity. They noted that any negative publicity or loss of Trump’s involvement could harm their revenues.
As the political landscape shifts, all eyes are on Trump and his media company. Will he hold onto his shares, or will market pressures force a change? Only time will tell.
