Donald Trump's plans to capitalise on his massive stake in Truth Social's parent company have been dramatically halted after regulatory intervention blocked the former president from selling his shares.
The £1.5 Billion Barrier
In a stunning financial blow, Trump cannot access his estimated £1.5 billion stake in Trump Media & Technology Group after the Securities and Exchange Commission declared the company's registration statement effective. This crucial decision triggers a six-month lock-up period that prevents major shareholders, including Trump, from selling their shares.
Market Turbulence Hits Trump's Fortune
The news comes as Trump Media shares experienced significant volatility, plummeting more than 18% in recent trading. This dramatic drop has substantially reduced the paper value of Trump's holdings, adding financial pressure on the former president who faces mounting legal costs across multiple jurisdictions.
Legal and Financial Perfect Storm
Trump's financial constraints are becoming increasingly apparent as he confronts:
- A £454 million bond payment in his New York civil fraud case
- Multiple ongoing criminal prosecutions requiring substantial legal funding
- Reduced fundraising capabilities from political supporters
- Limited liquid assets despite substantial paper wealth
Truth Social's Rocky Performance
The social media platform, launched as a conservative alternative to mainstream networks, has faced challenges in user growth and engagement. Despite merging with Digital World Acquisition Corp. to become publicly traded, the platform's financial performance has raised eyebrows among market analysts.
This development represents a significant financial setback for Trump, who had likely anticipated using his Truth Social stake to address pressing financial obligations. The six-month lock-up period ensures his paper wealth remains inaccessible during a critical period of legal and financial challenges.
