Trump Media's sell-off may be triggered by the post-lockup trading frenzy surrounding DJT.

• Trump Media shares rose after a series of steep declines.
• As lockup agreements expired, DJT stock experienced a significant decline, enabling company insiders, including majority owner Donald Trump, to sell their shares.
• Trump stated that he wouldn't sell his stake, but early investors, as per Trump Media, were considering cashing out.

The company behind Truth Social experienced a rise in shares on Tuesday morning as it attempted to recover from a downward spiral that coincided with insiders, including majority owner Donald Trump, receiving clearance to sell their stock.

The stock price of DJT increased by 7% in heavy trading following the opening bell, while it was up approximately 2% by 11 a.m. ET.

More than 32% of Trump Media stock plummeted after six consecutive trading days in the red, resulting in an upward trend.

The company's recent dive was just another negative development in a string of setbacks that have plagued it for months, following its public debut in late March after merging with a special purpose acquisition company.

Trump Media stock has dropped over 84% of its value since reaching an intraday high of $79.38 per share on its Nasdaq debut.

Since October 2021, the stock had not reached its lowest point until Monday, when news of a planned merger between Trump Media and the SPAC, Digital World Acquisition Corp., was announced.

Despite a recent decline in the value of his stake, Trump's ownership of nearly 57% of the company's outstanding shares was worth nearly $1.5 billion Tuesday morning.

On Thursday, the Republican presidential nominee and other early investors in the company were prohibited from selling their shares until lockup agreements expired, and this restriction was finally lifted.

The expiration of the lockup period sparked speculation about whether early investors would sell their shares in the company, which has yet to generate significant revenue from its sole product, Truth Social.

Trump has vowed not to sell his stake.

Early investors were planning to cash out as soon as the lockups expired, according to warnings from Trump Media.

On Tuesday morning, it was uncertain whether any previously incarcerated individuals had attempted to sell since Thursday. However, in most instances, these transactions would result in disclosure obligations with the U.S. Securities and Exchange Commission.

This is developing news. Please check back for updates.