Investors of President Donald Trump’s media company could “lose everything” after Truth Social made a new filing on Wednesday.
Truth Social filed papers with the U.S. Securities and Exchange Commission that would allow Trump’s trust to sell up to $2.3 billion in stock, Axios reported Wednesday. Trump Media & Technology Group, which operates the Truth Social platform, filed the statement that allows “variety of shareholders to sell stock from time to time,” according to the report.
Critics and pundits quickly pointed out that Trump is trying to “cash out” on Truth Social as its value continues to plummet.
“Trump is now cashing out of his fundamentally worthless social media company, which has now lost 57% of its stock market value since he became president—even more than Tesla’s 45% 3-month drop. Wonder how many of Trump’s true-believe sucker investors will learn their lesson?” author Kurt Anderson wrote on social media platform X.
Another user wrote: “As expected. Now Trump is dumping his $DJT . Those who dint [sic] get out early will lose everything”.
One user took a jab at Trump over his so-called “Liberation Day” of tariffs: “Trump is so optimistic about Liberation Day that he’s dumping his Truth Social stock, to the tune of over $2B, before our entire economy bottoms out like a Tesla Cybertruck hitting a pothole.”
Axios noted that Trump’s son, Donald Trump Jr., oversees the trust, according to the filing. The report also noted that the media company said in a statement that the filing did not indicate an intention to sell the shares.
“Legacy media outlets are spreading a fake story suggesting that a TMTG filing today is paving the way for the Trump trust to sell its shares in TMTG. To be clear, 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. In fact, there currently is no open window for any affiliate to sell shares,” the statement said.
Axios also reported that Trump said in September that he would not sell his Truth Social stock.
“A lot of people think I will sell my shares … but I don’t want to sell my shares, I don’t need to sell my shares. I don’t need money,” Trump said at the time, according to Axios.
According to CNBC, Trump Media stock dropped about 6% in morning trading on Wednesday.
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