Shares of Trump Media & Technology Group, the parent company of Truth Social, fell 12% on Monday after revealing plans to sell millions of additional shares. The regulatory filing indicated a potential sale of 146.1 million shares, including 114.8 million owned by former President Donald Trump. An additional 21.5 million shares could be sold upon the exercise of warrants from the company's merger with Digital World Acquisition Corp.
Since its market debut on 26 March, shares have dropped 60% from the opening price of $70.90. Trump is bound by a lockup agreement preventing him from selling his shares until September, tying his wealth to the company's performance. If prices hold, he could potentially earn billions from his stake.
The stock decline coincided with the start of Trump's criminal trial in Manhattan on Monday, where he faces 34 felony counts of falsifying business records related to hush-money payments. This marks the first criminal trial of a former US president, expected to last six weeks.
Trump faces significant financial pressure from legal judgments totalling around $500 million for civil fraud, defamation, and sexual abuse. Trump Media, backed by major political donors, offers a potential source of income to cover these debts. Earlier this month, Democratic-aligned groups called for a congressional investigation into the company amid reports of insider trading and loans from a Russian-American businessman under federal investigation.
