Donald Trump Plans to Sell £1.8bn Truth Social Stake

Shares drop as Trump opens door to offloading his entire investment in social media firm

Donald Trump is preparing to sell his entire stake in Truth Social, the social media company he founded. The move has sparked concerns among investors and triggered a sharp fall in the company’s share price.

Truth Social Shares Tumble

On Wednesday, shares in Trump Media and Technology Group (TMTG) fell by 7.4% after a regulatory filing revealed plans to sell over 142 million shares.

This includes Trump’s own 114 million shares, worth around $2.3 billion (£1.8 billion). The shares are held in a trust managed by his son, Donald Trump Jr.

The filing states that these shares may be sold “from time to time in one or more offerings”, without confirming specific dates.

Who Else Is Selling?

Other major shareholders also plan to sell:

• Pam Bondi, former US attorney-general
• Devin Nunes, TMTG chair
• An offshore firm registered in the Cayman Islands called Yorkville

In total, around 134 million shares will be offered for sale. TMTG also intends to issue 8.4 million new shares, which could further dilute the value for existing investors.

Trump Denies Immediate Sale Plans

In a post on Truth Social, TMTG claimed the filing was a “routine disclosure” and denied it was part of a plan to immediately sell Trump's shares.

However, investors are concerned, especially as the announcement comes just before Trump’s controversial “Liberation Day” tariffs — a set of import taxes that are expected to impact the global economy.

Background: A Volatile Investment

TMTG shares, trading under the ticker DJT, have been highly volatile. Although popular with Trump supporters, the stock has fallen more than 40% this year due to wider market fears and Trump’s trade policies.

Last September, the stock briefly surged after Trump announced he had no intention to sell. However, the Nasdaq temporarily halted trading, prompting Trump to accuse the exchange of acting on orders from regulators — a claim denied by officials.

This week, TMTG also became the first company listed on the NYSE’s new Texas platform, though its main listing remains on Nasdaq.

Retail Investors Make Up Most Shareholders

TMTG’s shareholder base is largely made up of small, individual investors, often referred to as retail investors.

According to the company:

• It has around 650,000 shareholders
• Fewer than 2,100 people own over 5,000 shares
• Less than 1,000 investors own more than 10,000 shares

Despite this loyal base, the company reported a $19.2 million loss in the third quarter of last year.

In Summary

Donald Trump’s move to sell his entire stake in Truth Social has shaken investor confidence, especially with wider market instability caused by his tariff announcements. As the situation unfolds, small investors and global markets alike will be watching closely.

Source: (FT.com)