DJT sale restrictions to be lifted, Trump Media shares slide.
- Shares of Trump Media fell at the opening bell.
- Soon, former President Donald Trump will be able to sell his nearly $2 billion stake in the company, which trades as DJT on the Nasdaq.
- The lockup agreement that took effect when the company went public in March has prevented Trump and other early investors from selling their shares.
At the opening bell on Thursday, shares fell, leaving only hours until former President Donald Trump can sell his nearly $2 billion stake.
At the market open, Truth Social, the social media platform owned by the company that trades as DJT on the Nasdaq, experienced a 5% decline.
Nearly 57% of DJT's outstanding shares are owned by Trump, the Republican presidential nominee, which was worth about $1.7 billion at Thursday morning's price, accounting for almost half of Trump's estimated on-paper net worth.
The lockup agreement that took effect when the company went public following a merger with a blank-check firm in late March has prevented Trump and other early investors from selling their shares.
The restrictions on the input sentence will expire as soon as Thursday afternoon. Trump Media has admitted in regulatory filings that the end of the lockup could lead to significant sales of the company's stock, and even the market's perception of a sell-off could decrease DJT's stock price.
While Trump, the majority shareholder, stated on Friday that he has no intention of selling his stake, other company insiders may attempt to profit from the opportunity as soon as it arises.
The success of the company is linked to the popularity of Trump, who frequently uses Truth Social to attract users to the platform.
Trump Media's stock has been declining for a month since its successful public debut, which coincides with the tumultuous presidential campaign of Donald Trump against Kamala Harris.
This is developing news. Please check back for updates.
Politics
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