Shares of Trump Media & Technology Group fell to record lows in the opening hours of Friday, the first day of trading since its largest shareholder, former President Donald Trump. Free to sell his shares in the company The truth behind the social platform.
Shares of Trump Media, commonly known as TMTG, fell nearly 7% to $13.73, valuing the company at less than $3 billion. Trump owns more than half of this.
After a company becomes publicly traded, Trump and other insiders at the company are unable to cash out more volatile shares because of standard lock-up agreements that prevent large shareholders from selling shares for a certain period of time. TMTG started public trading in March.
According to filings with the Securities and Exchange Commission, Trump owns nearly 115 million shares of the company. Based on TMTG’s share price early Friday, Trump’s stake is worth about $1.6 billion, at least on paper. It is generally not a good idea for large shareholders to try to sell large tranches of their shares, as this risks a wider sell-off.
Since going public, shares in Trump media have risen sharply, largely in response to news stories related to Trump, the Republican presidential nominee.
A week ago, the company’s shares rose nearly 12% after Trump said he would not sell shares when the lock-up period was extended. Shares fell more than 10% following this Discussion between Trump and Democratic nominee Vice President Kamala Harris earlier this month. In mid-July, stocks jumped more than 31% on the first day of trading following the first assassination attempt on Trump.
Trump Media & Technology Group Corp. now exists The value is significantly lower than several months ago. When the company created it Introduction Shares hit a high of $79.38 on the Nasdaq in March.
True community Jan. 6, 2021, after he was banned from Twitter and Facebook following the Capitol riots. Sarasota, Florida-based Trump Media is losing money and struggling to raise revenue. It is It lost nearly $58.2 million last year It generates just $4.1 million in revenue, according to regulatory filings.
