A trust managing Donald Trump's significant stake in Trump Media & Technology Group (the parent company of Truth Social) has filed to sell up to 142.5 million shares and warrants. This includes nearly all of Trump's 114.75 million shares, representing a substantial portion of his net worth.
Trump's stake in Trump Media constitutes almost half of his estimated $4.7 billion fortune, according to the Bloomberg Billionaires Index. The filing allows for the potential sale of his entire holding, although it's still subject to SEC approval.
The filing, described as routine by the company, aims to re-register shares and facilitate sales. Following the filing, the stock initially dropped but recovered some ground after the company's statement.
A trust overseeing Donald Trump’s $US2.1 billion ($3.3 billion) stake in the media company that owns Truth Social has filed to cash in on its position, which for the past year has formed the bedrock of the president’s fortune.
Trump Media & Technology Group shares slumped as much as 9.4 per cent before trimming losses on 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 before a lock-up expiration preventing insiders from selling and before Trump transferred his stake to a trust.
The filing is the first step for the president’s trust, controlled by his son, Donald Trump Junior, to potentially sell down his entire stake of 114.75 million shares. It also registered millions of shares owned by the sponsor of the blank-cheque 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 – 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 per cent 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 lock-up 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 $US2.1 billion worth of Trump Media shares are the most valuable asset in his $US4.7 billion fortune, according to the Bloomberg Billionaires Index.
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