An update on your DJT "investment" Joachim.
Trump Media sinks to post-merger lowTrump Media tumbled another 4% on Wednesday, trading during the session below $20 for the first time since the merger that formed the company this spring.
Trump Media has lost a staggering 70% of its value since late March, a selloff that has accelerated as Vice President Kamala Harris, the Democratic nominee, has gained in the polls against Trump.
That selloff has put a serious dent in Trump’s net worth.
As recently as May 9, Trump’s dominant stake of 114.75 million shares of Trump Media was valued at $6.2 billion.
But Trump couldn’t touch that fortune because, as is typical in deals like this, certain shareholders are subject to a lock-up period that prevents insiders from immediately selling.
According to filings, that lock-up period is scheduled to expire for Trump on September 25, but it could come even earlier.
The lock-up would lift if Trump Media’s share price equals or exceeds $12 for any 20 trading days within a 30-trading day period starting on August 22. As long as the stock doesn’t keep plunging, this would translate to the restrictions lifting as soon as September 20.
Trump Media insiders are sellingSome Trump insiders are already selling, perhaps contributing to the recent selloff in the share price.
For instance, Phillip Juhan, Trump Media’s chief financial officer and treasurer, recently disclosed selling $1.9 million worth of stock. Trump Media’s general counsel Scott Glabe, chief operating officer Andrew Northwall and chief technology officer Vladimir Novachki made smaller sales last week too.
Even Devin Nunes, the former Republican congressman who now serves as Trump Media’s CEO and president, dumped $632,000 worth of stock last week.
In Trump’s case, there could be political considerations, too.
“If Trump were to sell a large number of shares and the stock price tanks, to some degree he would be burning his own supporters who bought the stock,” said Jay Ritter, a finance professor at the University of Florida’s Warrington College of Business. “Politically, that may not play out real well for him.” |
