Trump Media Shares Decline Following Lock-Up Expiration

Shares in Trump Media & Technology Group experienced a decline in early US trading on Friday, following significant losses throughout the week after the expiration of restrictions on insider shares.

Shortly after the market opened, the stock fell by over 6%. It has decreased by approximately 18% over the previous four sessions, and is now down 80% from its peak in April.

The expiration of the lock-up on insider sales occurred on Thursday after the market closed. However, only about a third of the company’s shares, which are 57% owned by Republican presidential candidate Donald Trump and went public via a merger in March, are available for trading. As a result, any trading activity is likely to significantly affect the stock price, which has gained popularity among retail investors and is seen as a reflection of Trump’s prospects for a second presidential term in November.

After its public market listing, the value of Trump Media initially surged to nearly $10 billion. However, concerns about potential sales by Trump and other insiders have weighed on the stock in recent weeks. Despite this, Trump has stated that he has no intention of selling his shares, expressing his continued support for the business.

“I’m not leaving. […] I think it’s great,” Trump conveyed in a report.

Currently, Trump’s stake in the company is valued at $1.6 billion, a significant decline from the $6.2 billion valuation just four months ago.

Additionally, Patrick Orlando, a Miami businessman whose Arc Global Investments represents the largest stake in the special purpose acquisition company involved, along with United Atlantic Ventures, own around 11% each in Trump Media.