Shares of President Donald Trump’s social media company fell 15% on Monday after the company announced it could sell millions of additional shares in the coming months, including all of the former president’s shares. , losses widened since the IPO.
Trump Media & Technology Group, which operates Truth Social, has attracted both short sellers and loyal fans of the former president who believe the stock is highly overvalued since its market debut on March 26. The situation remains unstable.
Since going public following a blank check merger with Digital World Acquisition Corporation, the stock has already fallen nearly 60%, hitting an opening day high of $70.90.
Shares fell nearly 16% on Monday to $27.56.
Monday’s filing is considered standard after a company’s initial public offering.
It represents the potential sale of 146.1 million shares, including 114.8 million owned by Mr. Trump, the 78.75 million he currently owns, and the potential he may receive if certain performance-based actions are achieved. indicated that it would distribute in additional shares.
“It’s worth noting that if they filed a registration statement for Trump stock, I wouldn’t take it as a signal,” the lawyer told Reuters on background last week.
“Even if a shareholder has been locked up for a year, it’s perfectly normal to put it forward for the shareholder,” the lawyer said.
Trump, the presumptive Republican nominee for the November 2024 presidential election, is on trial in a Manhattan court over hush money payments to porn stars. He pleaded not guilty.
The filing also listed an additional 21.5 million shares that could be sold upon the exercise of certain warrants issued when the company went public.
