Shares of Donald Trump’s social media company, Trump Media and Technology Group, fell 5% after it filed with the SEC to potentially allow his trust to sell up to 115 million shares worth over $2.3 billion. While this filing does not guarantee a sale, it raises concerns among investors about a possible sell-off by Trump, the company’s largest shareholder, which could diminish stock value. TMTG issued a statement clarifying that this filing merely re-registers shares already listed and there is no immediate sale window. Trump has previously stated he has no intention of selling his shares.
Shares in Donald Trump’s social media firm dropped during morning trading on Wednesday, following the company’s submission of documents to the Securities and Exchange Commission, which could permit the president’s trust to divest more than $2 billion in shares.
On Tuesday, Trump Media and Technology Group registered with the SEC, potentially allowing the president’s trust to sell nearly 115 million shares, valued at over $2.3 billion.
However, the filing does not assure that any shares will be sold or indicate plans for a future sale. Since assuming office, Trump has placed his ownership in the Donald J. Trump Revocable Trust, which is overseen by his son, Donald Trump Jr.
President Donald Trump walks across the South Lawn while returning to the White House in Washington, D.C., March 30, 2025.
Nathan Howard/Reuters
A potential sell-off by Trump, the company’s primary shareholder, could unsettle investors and negatively impact the stock price.
By midday Wednesday, the stock price of the company had declined by approximately 5%.
Trump Media and Technology Group addressed concerns about Trump’s potential share sales in a statement on Wednesday.
“Mainstream media are propagating misleading reports implying that TMTG’s filing today is setting the stage for the Trump trust to sell shares in TMTG. To clarify, these shares were initially registered last June on an S-1 form, and today’s TMTG filing is a routine procedure that re-registers them on an S-3 form to keep the Company’s submissions valid. Currently, there is no opportunity for any affiliate to sell shares,” the statement noted.
The president has expressed his intention to retain his shares in the company.
“I have no intention of selling my shares. I am not in need of money,” Trump stated to reporters in September.
The SEC filing acts as a warning to investors regarding millions of shares that may be available for sale on the market, according to finance experts at ABC News.
President Donald Trump’s social media platform Truth Social displayed on a smartphone on March 25, 2024 in Chicago, Illinois.
Scott Olson/Getty Images
This filing also updates information regarding Trump’s majority ownership and indicates the possibility of an additional 8 million shares becoming available in the market. University of Florida finance professor Jay Ritter described the filing as necessary if company insiders intended to sell their shares.
“This offering indicates that the Trump trust could potentially sell shares — it doesn’t mean they will necessarily do so,” analyst Seth Goldstein from Morningstar told ABC News. “It signals to the market that this option exists.”
“It leaves the timing of any possible sale uncertain,” Goldstein added.
Some insiders have managed to profitably sell shares during the period of high stock prices.
“Trump Media has struggled to establish a sustainable business model, but they have been quite adept at selling their stock,” Ritter noted.
According to Ritter, a sell-off by insiders like Trump could significantly impact the share price by indicating a lack of confidence in the company’s business strategy.
“The sale of Resale Securities presented in this prospectus, or the perception of potential sales, could lead to a substantial drop in the public trading price of our Common Stock,” the filing outlined.
This report was contributed by ABC News’ Max Zahn.