(Bloomberg) — A trust overseeing Donald Trump’s $2.1 billion stake in the media company that owns Truth Social is keeping the door open to cashing in on its position, which for the past year has formed the bedrock of the president’s fortune.
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Trump Media & Technology Group Corp. shares slumped as much as 9.4% before trimming losses Wednesday after the company filed on April 1 to register up to 142.5 million shares and warrants for sale. The company had previously registered the shares in a regulatory filing in June, prior to a lock-up expiration preventing insiders from selling and before Trump transfered his stake to a trust.
The filing is the first step for the president’s trust, controlled by his son Donald Trump Jr.. to potentially sell down his entire 114.75 million share stake. It also registered millions of shares owned by the sponsor of the blank-check firm that merged with Trump Media to take it public last year.
The US Securities and Exchange Commission needs to deem the filing effective before Trump’s trust, the special-purpose acquisition company sponsor — ARC Global Investments II LLC — and other insiders can begin selling their shares.
The company said in a statement that the filing was “routine” to re-register the shares to keep the company’s filings effective.
The stock rose to its highest level of the day, cutting its decline to 1.4% before being halted for volatility after the statement was published.
In September Trump sent shares of the social media startup soaring after he said he had “absolutely no intention of selling” his stake when a lockup period expired days later. He transferred his stake to the Donald J. Trump Revocable Trust, controlled by Trump Jr., in December after he won the election.
The president’s $2.1 billion worth of Trump Media shares are the most valuable asset in his $4.7 billion fortune, according to the Bloomberg Billionaires Index.
Despite a $4.1 billion valuation, the company has struggled. Revenue slumped to just $3.6 million for the entirety of 2024, dropping more than 12% as it lost more than $400 million, regulatory filings show.
Trump Media has been expanding its money-losing operations beyond being a social media company, partnering with Crypto.com on a lineup of “Made-in-America” investments and leaning into financial services with a new brand called Truth.Fi partnered with Charles Schwab Corp.
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