The Republican presidential nominee and other large investors, who collectively own more than 20 million shares, were free to sell the stock after the closing bell.
Trump Media debuted on the Nasdaq to great fanfare in March, with the share price soaring to more than $60.
But It has suffered volatile swings during his run for the White House as incumbent Joe Biden dropped out and Kamala Harris got the Democratic nomination.
The latest polls show Trump and the Vice President are virtually tied in the major swing states.
Trump launched Truth Social in February 2022 after he was banned from major sites such as Facebook and the platform formerly known as Twitter following the Jan. 6 attack on the US Capitol.
He’s since been reinstated to both — and endorsed by X owner Elon Musk — but he still mostly posts on his own platform.
While Truth Social sought to capitalize on the outrage over Trump’s bans, it has struggled gaining traction.
The platform had less than 1 million daily active users as of April, according to data from Similarweb.
Truth Social's Struggles
Truth Social's struggles are reflected in the company's stock performance. The platform has failed to gain the traction it hoped for and the company has been losing money. Truth Social’s parent company, 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.
Despite the expiration of the lockup period, it will likely be “very difficult” for Trump to sell his shares, Bloomberg reported, because he faces additional regulatory restrictions.
Trump has an estimated net worth of about $3.8 billion. His fortune swelled to over $8 billion from about $4.1 billion when the company went public in March.
The Expiration of the Lockup Agreement
A lockup period prohibiting Trump from offloading any of his roughly 60% stake in the company ended on Thursday, after the stock met a requirement of closing above $12 per share for at least 20 out of 30 trading sessions beginning Aug. 20.
The ban’s expiration also allows other shareholders who own 5% or more of shares or those who serve in high-level management roles to sell their shares.
Trump's Stance on Selling His Shares
Trump said last week he has “absolutely no intention” of selling his shares in the Truth Social parent company, whose shares are down more than 18% this week.
The value of Trump’s stake—totaling 114.75 million shares—dropped from $2 billion last Friday to $1.58 billion as of today’s share price.
The Impact on Trump's Fortune
The lockup period’s expiration comes as Trump faces a number of legal challenges, including an ongoing investigation into his handling of classified documents and a potential indictment for his role in the January 6 attack on the US Capitol.
Trump's legal woes and the decline in the value of his stock could have a significant impact on his finances. The company’s public trading debut in March started a lockup period, a standard procedure for freshly public firms that require the company to trigger one of three factors to end the ban.
The Future of Trump Media
The future of Trump Media remains uncertain. The company’s struggles to attract users and generate revenue suggest that it may be difficult for it to achieve profitability.
Despite Trump’s insistence that he will not sell his stake, the company’s future may depend on whether other major investors are willing to hold onto their shares. If they choose to sell, it could further drive down the stock price and make it more difficult for Trump Media to raise capital.
The expiration of the lockup period is a significant development for Trump Media, and it will be interesting to see how the company performs in the months ahead. The company’s struggles to attract users and generate revenue suggest that it may be difficult for it to achieve profitability.
Trump Media's Future
The future of Trump Media remains uncertain. The company's struggles to attract users and generate revenue suggest that it may be difficult for it to achieve profitability.
Despite Trump's insistence that he will not sell his stake, the company's future may depend on whether other major investors are willing to hold onto their shares. If they choose to sell, it could further drive down the stock price and make it more difficult for Trump Media to raise capital.
The expiration of the lockup period is a significant development for Trump Media, and it will be interesting to see how the company performs in the months ahead.
