A trust overseeing President Donald Trump’s multi-billion dollar stake in Truth Social’s (DWAC) parent company could sell up to 115 million shares, according to a regulatory filing.
In the past, the president has vehemently denied that he would sell his shares
A trust overseeing President Donald Trump’s multi-billion dollar stake in Truth Social’s (DWAC) parent company could sell up to 115 million shares, according to a regulatory filing.
Trump Media and Technology Group stock dropped as much as 9% on the news, before paring back some of those losses. The stock, which has often been described as a meme stock, has shed 44% of its value since Jan. 1.
Trump Media on Tuesday filed to register up to 142.5 million shares and warrants for sale, according to a filing with the Securities and Exchange Commission. That includes 114.75 million shares of common stock held by Trump’s trust, which is controlled by Donald Trump, Jr., the president’s eldest son. Axios first reported on the filing.
The SEC will need to consider the filing effective before stockholders such as Trump’s trust and ARC Global, which sponsored Trump Media’s special-purpose acquisition company, can sell their shares.
Trump’s ownership of Trump Media, valued at roughly $2.1 billion, made him one of the world’s 500 richest people last year, with a fortune of as much as $6.5 billion. Forbes now estimates his fortune at about $4.7 billion.
In a statement, Trump Media denied that the filing indicates Trump’s trust or other insiders plan to sell their shares.
“To be clear, these shares were already registered last June on an S-1 form, and today TMTG submitted a routine filing that re-registers them on an S-3 form in order to keep the Company’s filings effective,” the company said. “In fact, there currently is no open window for any affiliate to sell shares.”
Last year, the president, amid speculation that he may sell his stake after a six-month lockup period ended, said he wouldn’t sell his stake in the company.
“The reason I built it is because I don’t want to have my voice shut down,” Trump said during a press conference at his golf course near Los Angeles in September. “A lot of people think that I will sell my shares, you know, they’re worth billions of dollars, but I don’t want to sell my shares. I don’t need money.”
The filing comes as another company that trades in politics, Newsmax, has a dizzying first week as a public company. The conservative television network’s stock has soared by more than 623% since it debuted on the New York Stock Exchange, making founder Christopher Ruddy a billionaire. The stock was down 45% in intraday trading Wednesday morning.
Trump launched Truth Social after being banned from major social media platforms like Facebook $META (META) and Twitter $TWTR in 2021. Its parent company recently launched a streaming platform, expanded to offer investment vehicles, established a strategic acquisition fund, and became the first company to list on the NYSE’s Texas branch. The firm reported less than $4 million in sales last year, with a net loss of roughly $401 million.
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