Donald Trump will soon be free to start selling off more than $2 billion in shares he holds in the company that controls his social media platform, Truth Social—but doing so could send the stock price plummeting.
When Truth Social’s parent company, Trump Media & Technology Group, went public in March by merging with a special purpose acquisition company, the former president was granted about 114.75 million shares, which amounts to about 59% ownership. That stake makes up over half of his $4.5 billion net worth, according to Forbes, but so far he hasn’t been able to profit from his shares.
This is due to a lockup period that prevents company insiders from off-loading shares for approximately 180 days. While he hasn’t said that he intends on selling any of his Trump Media (DJT) stock, he will get the green light to do so as early as Sept. 20, when the lockup period is set to expire. If Trump sells shares, he will have to report it in a filing with the SEC within two days.
The Trump campaign and Trump Media & Technology Group did not immediately respond to a request for comment. When asked about Trump selling his shares, a Trump Media spokesperson told Bloomberg on Tuesday that there’s no “conceivable sign anywhere that he plans to do so.”
The opportunity to off-load shares could be a boon for Trump, whose mounting legal costs have set him back by about $100 million, according to the New York Times. The lockup period will expire right around the time when Trump is set to be sentenced by a judge after being found guilty of 34 criminal counts in a much publicized hush-money trial. Trump could also use the proceeds of his stock sale to fund his campaign, which he previously said he might be willing to do.
If he does start off-loading his shares, Trump Media’s stock could sink thanks to the dilutive effect of increased supply. The company’s stock price closed up less than 1% at $22.81 on Friday.
The stock has already been on a wild ride this year. Shares skyrocketed 30% after the former president survived an assassination attempt in July. Yet Trump Media shares have plummeted about 70% from their high of nearly $80 in March, owing in part to the company’s falling revenue and a $16 million loss in its most recent quarter.
Trump’s return to rival social media platform X also hasn’t helped the stock. After being suspended indefinitely in 2021, when X was known as Twitter, Trump has since been invited back by new owner and supporter Elon Musk.
Financial experts have said DJT shares serve as a way for investors to bet on Trump’s chances of winning the presidential election in November. But the stock has fallen consistently since President Joe Biden ended his reelection campaign and Vice President Kamala Harris stepped up as the nominee. Harris accepted the Democratic nomination for president Thursday. She is closing the gap with Trump in national polls and prediction markets.
