Trump Faces a $2 Billion Choice About His Social Media Empire

Former President Donald Trump is about to regain the ability to sell shares in his social media company, Trump Media & Technology Group, which owns Truth Social. The restrictions that prevented Trump and other insiders from selling their shares will expire as soon as Thursday afternoon.

This means Trump and others can choose to sell their shares if they want.

This is a big moment for Trump Media, as the company’s stock price has dropped a lot since going public in March. Trump, who is the face of the company and owns the most shares, has said he’s not planning to sell. “No, I’m not selling. No, I love it,” Trump told reporters recently, which briefly boosted the stock price.

Trump’s stake in the company is worth much less now—about $1.8 billion, down from $6.2 billion just four months ago. Even if Trump wanted to sell, doing so would be tricky. Selling a large amount of shares at once could cause the stock price to crash.

“He knows better than to do that,” said Michael Stegemoller, a finance professor at Baylor University. “If he dumped all his shares, it would flood the market and hurt the stock price.”

Trump Media is closely tied to Trump’s identity. His initials are even part of the stock ticker symbol (DJT), and he’s the most popular user on Truth Social.

“This company’s value depends heavily on one person—Trump,” Stegemoller explained. “It’s unusual to see this, even with companies like Apple and Steve Jobs.”

The lock-up period, which is common when companies go public, was put in place to prevent early investors from selling their shares too quickly. While there’s some uncertainty about the exact timing, these restrictions will lift by September 25 at the latest.

Other insiders, like co-founders Andy Litinsky and Wes Moss, who have been involved in legal disputes with the company, may also choose to sell their shares.

Trump might also decide to use his shares as collateral for a loan instead of selling them outright. This would allow him to raise money without selling, but he would still need to report it to regulators. If he doesn’t, he could face legal trouble, as seen in a recent case involving billionaire Carl Icahn, who was fined by the SEC for failing to disclose loans tied to his shares.

As the restrictions expire, all eyes will be on what Trump and other insiders choose to do, which could greatly affect the company’s future.