In a surprising turn of events, former President Donald Trump announced on Friday that he is not planning to sell his shares in Truth Social’s parent company, Trump Media & Technology Group. This statement came as a response to a reporter’s query during a press conference and led to a dramatic surge in the company’s stock price.
Trump’s Reassurance Boosts Stock Price
Trump’s denial of any intention to sell his shares had an immediate impact on the market. The company’s stock price soared by 25% shortly after his announcement, prompting a trading halt due to volatility. By late afternoon, Trump Media’s shares were still up by 19%, reflecting investor relief and renewed confidence.
“No, I’m not selling. No, I love it,” Trump affirmed, addressing concerns about his potential departure from the company. His remarks seemed to counter fears that his exit would negatively impact the stock.
Lock-Up Period Expiration and Market Concerns
The lock-up period, during which insiders including Trump are restricted from selling their shares, is set to expire on September 19. If the share price remains above $12 at that time, Trump and other insiders could begin selling their stakes. However, experts warn that offloading a significant portion of shares could lead to a drastic drop in stock value.
Despite Trump’s assurance, it remains uncertain whether he is considering selling even a fraction of his shares. Currently, Trump holds a dominant 57% stake in Trump Media, which amounts to 114.75 million shares valued at approximately $1.8 billion based on Thursday’s closing price.
Recent Stock Volatility
The stock’s value has faced significant declines in recent months, exacerbated by concerns over the expiring lock-up restrictions and political uncertainties. The share price hit record lows earlier this week, partly influenced by Trump’s underwhelming performance in a recent debate, which stirred investor anxiety.
Trump’s statements have provided a temporary boost to the company’s stock, but the future remains uncertain as market dynamics continue to evolve.
(Includes inputs from online sources)
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