Recently, the parent company of Truth Social, the social media platform owned by former US President Donald Trump, has submitted documents to regulatory authorities in the United States, outlining plans to sell a portion of its stocks, including Trump’s holdings valued at around $2.3 billion.
According to a report by the Financial Times, Trump Media and Technology Group (TMTG), the parent company of Truth Social, submitted the documents to the Securities and Exchange Commission (SEC) on Tuesday, April 1st. The company plans to sell over 142 million shares of stock, including 114 million shares owned by Trump.
Additionally, TMTG plans to issue 8.4 million new shares of stock.
Trump’s 114 million shares in TMTG are held by a trust under his son, Donald Trump Jr., accounting for approximately 59% of the company’s shares. Based on the closing price of $20.26 per share on the 1st of April, the value is estimated at around $2.3 billion.
On the morning of Wednesday, April 2nd, trading of Trump Media and Technology Group’s stock dropped by 7% before the market opened.
Despite TMTG reporting a net loss of $19.2 million in the third quarter, many investors have shown their support for former President Trump by buying shares in the company. As of October last year, the company had about 650,000 shareholders, the majority of whom are retail investors.
TMTG stated that there are only about 2,100 investors holding over 5,000 shares and less than 1,000 investors holding over 10,000 shares.
In a separate development, conservative media outlet Newsmax went public on Monday, March 31st. The stock price surged from $10 per share to $233 within two days, but later dropped back to around $141 on Wednesday.