Trump Media Stock Falls After SEC Filing for Potential Share Sale

TLDR

• Trump Media & Technology Group (DJT) stock fell 7.4% after filing to allow Trump’s trust to potentially sell $2.15 billion in shares
• The company clarified there are “no current plans” for sale and called it a “routine filing”
• The Trump trust holds 52.2% stake (114,750,000 shares) in the company
• DJT stock is now trading about 75% below its peak of nearly $80
• The drop comes ahead of Trump’s “Liberation Day” tariff announcements and as Newsmax recently went public

Shares of Trump Media & Technology Group (DJT) dropped 7.4% to $18.76 on Wednesday. This happened after the company filed paperwork with the Securities and Exchange Commission.

The filing would allow a trust controlled by President Donald Trump to eventually sell around $2.15 billion in stock. The company stated there are no current plans to sell these shares.

The stock declined even as the broader market rallied on the same day. At one point, DJT shares were down as much as 9%.

Trump Media & Technology Group Corp. (DJT)

Filing Details and Company Response

Trump Media filed a Form S-3 registration statement with the SEC. This type of filing allows shareholders to periodically sell stock but doesn’t guarantee that the shares will actually be sold.

“These shares were already registered last June on an S-1 form, and today TMTG submitted a routine filing that re-registers them on an S-3 form in order to keep the Company’s filings effective,” the company explained in a statement.

The company further clarified that “there currently is no open window for any affiliate to sell shares.” This suggests the filing is more administrative than indicating an immediate stock sale.

The filing mentions 114,750,000 shares held by the Donald J. Trump Revocable Trust. This represents a 52.2% stake in Trump Media.

Of those shares, 78,750,000 are common stock. The remainder are “earnout shares” issued to Trump on April 26, 2024.

Business Developments and Financial Performance

The filing comes at a busy time for Trump Media. The company recently announced its debut on the New York Stock Exchange’s new NYSE Texas exchange.

It was the first company to list there. However, Trump Media continues to maintain its primary listing on the Nasdaq Stock Market.

The company also recently announced a partnership with Crypto.com. This deal aims to launch exchange-traded funds for Bitcoin and other crypto assets.

Despite these developments, the company faces financial challenges. Trump Media posted sales of only $3.6 million for all of 2024.

The company reported a net loss of more than $400 million during the same period. There is also limited institutional investor support for the stock.

Market Context and Competition

DJT stock has been very volatile since its Wall Street debut in March 2024. The company went public following its merger with Digital World Acquisition Corp., a special purpose acquisition company.

The stock is now trading about 75% below its peak of just under $80. That high point was reached shortly after the merger was completed.

The filing also comes ahead of what Trump is calling “Liberation Day.” The president is expected to announce a series of tariffs later today.

Some market watchers fear these tariffs could trigger a global trade war. Trump Media’s stock had already fallen about 50% since Trump’s inauguration, prior to Wednesday’s news.

There’s also new competition in the market. Newsmax, a conservative-leaning cable TV and social media company, went public this week.

Newsmax shares soared Monday and Tuesday before dropping nearly 80% on Wednesday. Despite this drop, Newsmax’s stock remains up more than 425% from its initial offering price.

The new Newsmax listing may be attracting investors who previously focused on Trump Media, particularly those supportive of the MAGA movement.

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