Trump Media shares slide with DJT sale restrictions set to lift

Shares of Trump Media fell at the opening bell Thursday, with just hours to go until former President Donald Trump is expected to be able to start selling his nearly $2 billion stake.

The company, which owns social media platform Truth Social and trades as DJT on the Nasdaq, was down 5% at the market open.

Trump, the Republican presidential nominee, owns nearly 57% of DJT’s outstanding shares. That stake at Thursday morning’s price was worth about $1.7 billion — almost half of Trump’s estimated on-paper net worth.

But Trump, and other early investors, have been barred from selling their shares under a lockup agreement that took effect when the company went public following a merger with a blank-check firm in late March.

Those restrictions are set to expire as soon as Thursday afternoon. Trump Media has acknowledged in regulatory filings that the end of the lockup could spur large sales of the company’s stock, and even the market’s perception of a sell-off could drive down DJT’s stock price.

Trump, the majority shareholder, said Friday that he has no plans to sell his stake. But other company insiders might try to cash in as soon as they get a chance to do so.

The company’s fortunes are tied up with those of Trump, whose use of Truth Social makes him a main draw to the platform.

After soaring in its public trading debut, Trump Media has suffered a monthlong stock slump that has coincided with Trump’s tumultuous presidential campaign against Democratic nominee Kamala Harris.

This is developing news. Please check back for updates.