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 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, prior to a lock-up expiration preventing insiders from selling and before Trump transferred his stake to a trust.
Donald Trump’s stake in the company makes up nearly half of his fortune.Credit: AP
The filing is the first step for the president’s trust, controlled by his son Donald Trump Jr. to potentially sell down his entire 114.75 million share stake. 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.
The filing is the first step for the president’s trust, controlled by his son Donald Trump Jr. to potentially sell down his entire 114.75 million share stake.Credit: AP
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 lockup 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.
