Trump Media Stock Plummets Amid Rumors of Major Share Sale

WASHINGTON, D.C. — Shares of Trump Media & Technology Group (TMTG) plummeted by 8% on Wednesday following a regulatory filing that revealed plans for a substantial stock sale. The development comes as U.S. President Donald Trump prepares to announce new trade tariffs, dubbed ‘liberation day’ policies, that could impact the broader economy.

The U.S. Securities and Exchange Commission (SEC) filing, submitted late Tuesday, outlines a plan to sell over 142 million shares, including Trump’s 114 million shares held in a trust managed by his son, Donald Trump Jr. Other shareholders, such as U.S. Attorney General Pam Bondi and TMTG Chairman Devin Nunes, plan to sell a combined 134 million shares. TMTG is also issuing an additional 8.4 million new shares to increase the available trading stock.

According to Yahoo Finance, TMTG shares, which trade under the ticker DJT, have already seen a decline of more than 44% year-to-date. This downturn has raised concerns about the potential adverse effects of President Trump’s aggressive trade agenda on the U.S. economy.

On the same day of the stock filing, Trump is scheduled to deliver remarks in the White House Rose Garden regarding new ‘reciprocal’ tariffs targeting foreign imports. Market analysts are anticipated with concern, fearing the new levies could strain relations with U.S. trading partners.

The decision to register shares for sale contradicts a previous statement made by Trump, who last September announced he had no intention of selling his stake, leading to a temporary trading halt due to volatility. He later expressed frustration, questioning Nasdaq‘s actions in stopping trades.

TMTG management attempted to mitigate concerns over an insider stock sale, claiming that the shares in question had originally been registered in June. They aimed to clarify that a routine filing was submitted to maintain the effectiveness of the company’s filings. ‘There currently is no open window for any affiliate to sell shares,’ the company stated.

Despite management’s assurances, the prospectus acknowledged that a stock sale by insiders could adversely affect public shareholders. If significant selling pressure arises, it could lead to a decline in TMTG stock value.

Since going public through a special purpose acquisition company (SPAC) merger last year, Trump Media stock has experienced notable volatility. Currently, shares are down nearly 70% from their post-merger peaks, yet remain a preferred investment for many of Trump’s supporters, primarily individual investors.

As of October 2024, TMTG reported approximately 650,000 shareholders, mainly comprised of retail investors. The company also revealed that about 2,100 investors owned more than 5,000 shares, with fewer than 1,000 holding over 10,000 shares.

At the start of Wednesday’s trading session, shares were priced around $19, giving Trump’s trust a theoretical valuation exceeding $2 billion. On Monday, TMTG marked a milestone by becoming the first company to list on the New York Stock Exchange’s new Texas platform, while maintaining its primary listing on Nasdaq.