Trump Media stock hits a new low of $19.99 per share.
- Trump Media, a company owned by former President Donald Trump, experienced a drop in stock price to below $20 per share for the first time since Truth Social began trading.
- A lock-up agreement on Trump selling his stock is soon set to expire.
The stock slide of the company majority-owned by former President Donald Trump continued for months, with shares falling below $20 for the first time since its public listing in March of this year.
Since the Republican presidential nominee survived an assassination attempt at a campaign rally in Pennsylvania on July 15, Trump Media has lost more than half its value.
A spokesperson for Trump Media did not promptly respond to CNBC's request for comment on the stock's recent decline.
Trump's stake in Trump Media is worth more than $2.2 billion, even after losing much of its value, which is more than half of his on-paper net worth, according to Forbes.
Trump and other company executives and insiders are restricted by lock-up agreements from selling their shares.
As of Sept. 20, the lock-ups on Trump's shares will expire, allowing him to sell them.
If he sells or seems likely to sell, investors may lose confidence in Trump Media, as acknowledged in the company's regulatory filings.
The company acknowledges that its new social media platform, Truth Social, relies on Trump's popularity and reputation to a certain extent. Trump, who has the most popular Truth Social account, has been posting more frequently on X, his previous preferred messaging app, and TikTok.
Last month, Trump Media revealed an agreement with investment firm Yorkville Advisors that could allow the company to issue up to $2.5 billion in stock.
Devin Nunes, CEO of Trump Media, stated in a July 3 press release that the deal would ensure access to additional capital if required to capitalize on big strategic opportunities while expanding the portfolio through acquisitions and technologies in the Patriot economy.
Politics
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