Trump's $2 Billion Choice: Ex-president Commits to Retaining Stake in Social Media Project
Shares of Trump Media experienced a significant increase after his remarks on Friday, jumping nearly 30 percent at their peak. By the end of the trading session, the stock had closed with approximately a 12 percent gain.
TroibNews 
Donald Trump stands on the verge of a potential financial gain of approximately $2 billion, although he insists he has no plans to cash out.
On Friday, the GOP presidential nominee declared that he will retain his majority stake in Trump Media & Technology Group, the struggling social media enterprise behind his preferred platform, Truth Social. This announcement comes just days before he is set to have the opportunity to sell nearly 115 million shares in the company for the first time.
“I don’t need money,” Trump stated during a press conference in California when asked about the prospect of selling. “I have absolutely no intention of selling.”
He went on to explain, “We built this platform, and the reason I built it was I don’t want to have my voice shut down.”
For weeks, the looming question of whether Trump will sell has weighed heavily on Trump Media, negatively impacting its stock price as investors worried about the possibility of the former president liquidating his shares. Since the company’s debut on Wall Street earlier this year, Trump, along with several key investors, has been under a lock-up agreement that prevented sales. This agreement is expected to lift on September 19.
If he were to cash out, Trump could realize a substantial payday that might aid in his ongoing legal challenges, bolster his personal wealth, and support his presidential campaign. Former Federal Election Commission officials have indicated to PMG that he could lawfully donate proceeds from any sale of his shares to his campaign, provided he adheres to the required disclosure protocols.
However, the impending expiration of the lock-up poses a perilous gamble for him: selling even a small portion of his shares could drive the stock price down further, potentially leaving his staunch supporters and the company itself in a precarious position.
Following Trump's remarks on Friday, shares of Trump Media surged, climbing nearly 30 percent at one point, and closing with an approximate 12 percent increase.
Founded nearly three years ago, Trump Media was envisioned as a new direction for the Trump brand. Initially, the share price soared after its market introduction, with Trump's stake at one point valued at $6 billion.
The company was conceived as a conglomerate to rival leading Silicon Valley firms in social media, streaming, and podcasting. However, it has not yet become a fully realized entity.
Consistent financial losses have plagued the company, which only recently expanded beyond traditional social media with the launch of a streaming service. While usage of Truth Social is increasing, it remains minor compared to other social media giants.
According to data from Similarweb, Truth Social had approximately 790,500 monthly active users on its iOS and Android apps in August, vastly overshadowed by X (formerly Twitter), which boasted 73.5 million users.
Trump has also resumed posting on X, having been banned following the January 6 Capitol incident, while primarily using Truth Social for his communications. Despite having a much smaller following on Truth Social—7.7 million compared to over 90 million on X—he continues to prioritize that platform.
Shares in Trump Media are often perceived as a barometer for gauging support for the former president, frequently moving in tandem with headlines related to his bid for the presidency. The share price surged more than 30 percent following a recent assassination attempt against him, though it has recently plummeted as the lock-up expiration approaches and Vice President Kamala Harris gains traction in her campaign.
The future remains uncertain for Trump Media. Although Trump stated he does not intend to sell, other significant investors could still choose to sell their shares when the lock-up period concludes next week. Additionally, Trump and these investors might utilize their shares as collateral for loans once they have the freedom to sell.
It remains ambiguous how long Trump plans to hold his shares, despite his remarks on Friday.
“If he says he’s not selling, it just depends on how much you believe him,” noted Julian Klymochko, CEO of Accelerate Financial Technologies. “What sort of duration does that comment cover? Is it a month? A year? Forever?”
A spokesperson for Trump Media did not respond immediately to requests for more information.
Ian Smith contributed to this report for TROIB News
On Friday, the GOP presidential nominee declared that he will retain his majority stake in Trump Media & Technology Group, the struggling social media enterprise behind his preferred platform, Truth Social. This announcement comes just days before he is set to have the opportunity to sell nearly 115 million shares in the company for the first time.
“I don’t need money,” Trump stated during a press conference in California when asked about the prospect of selling. “I have absolutely no intention of selling.”
He went on to explain, “We built this platform, and the reason I built it was I don’t want to have my voice shut down.”
For weeks, the looming question of whether Trump will sell has weighed heavily on Trump Media, negatively impacting its stock price as investors worried about the possibility of the former president liquidating his shares. Since the company’s debut on Wall Street earlier this year, Trump, along with several key investors, has been under a lock-up agreement that prevented sales. This agreement is expected to lift on September 19.
If he were to cash out, Trump could realize a substantial payday that might aid in his ongoing legal challenges, bolster his personal wealth, and support his presidential campaign. Former Federal Election Commission officials have indicated to PMG that he could lawfully donate proceeds from any sale of his shares to his campaign, provided he adheres to the required disclosure protocols.
However, the impending expiration of the lock-up poses a perilous gamble for him: selling even a small portion of his shares could drive the stock price down further, potentially leaving his staunch supporters and the company itself in a precarious position.
Following Trump's remarks on Friday, shares of Trump Media surged, climbing nearly 30 percent at one point, and closing with an approximate 12 percent increase.
Founded nearly three years ago, Trump Media was envisioned as a new direction for the Trump brand. Initially, the share price soared after its market introduction, with Trump's stake at one point valued at $6 billion.
The company was conceived as a conglomerate to rival leading Silicon Valley firms in social media, streaming, and podcasting. However, it has not yet become a fully realized entity.
Consistent financial losses have plagued the company, which only recently expanded beyond traditional social media with the launch of a streaming service. While usage of Truth Social is increasing, it remains minor compared to other social media giants.
According to data from Similarweb, Truth Social had approximately 790,500 monthly active users on its iOS and Android apps in August, vastly overshadowed by X (formerly Twitter), which boasted 73.5 million users.
Trump has also resumed posting on X, having been banned following the January 6 Capitol incident, while primarily using Truth Social for his communications. Despite having a much smaller following on Truth Social—7.7 million compared to over 90 million on X—he continues to prioritize that platform.
Shares in Trump Media are often perceived as a barometer for gauging support for the former president, frequently moving in tandem with headlines related to his bid for the presidency. The share price surged more than 30 percent following a recent assassination attempt against him, though it has recently plummeted as the lock-up expiration approaches and Vice President Kamala Harris gains traction in her campaign.
The future remains uncertain for Trump Media. Although Trump stated he does not intend to sell, other significant investors could still choose to sell their shares when the lock-up period concludes next week. Additionally, Trump and these investors might utilize their shares as collateral for loans once they have the freedom to sell.
It remains ambiguous how long Trump plans to hold his shares, despite his remarks on Friday.
“If he says he’s not selling, it just depends on how much you believe him,” noted Julian Klymochko, CEO of Accelerate Financial Technologies. “What sort of duration does that comment cover? Is it a month? A year? Forever?”
A spokesperson for Trump Media did not respond immediately to requests for more information.
Ian Smith contributed to this report for TROIB News
