Donald Trumprecently said he would not sell his stock in Trump Media & Technology Group (DJT). But, starting Thursday, he will have that option — something that's not been available since the social media company went public in March.
“I have absolutely no intention of selling,” the former president told reporters at a press conference last week. “I love it. I use it as a method of getting out my word.”
DJT shares surged by double digits on Friday following his revelation, although the stock has recently given up those gains, falling more than 10% over the past six days to close below $14.50 on Thursday — near the low-end of its 52-week range and far off its record high of just over $79 a share.
Stakeholders, including the former president, are subject to a six-month lockup period before selling or transferring shares. That lockup period will expire on Thursday, although Trump was still able to pocket some cash in late April when the stockhit a milestone that secured him an additional $1.2 billion.
As Yahoo Finance's Ben Werschkul detailed, the purpose of a lock-up period is to protect a newly public company's interests and allow it to preserve stability before its founders can cash out.
“If I sell, it wouldn’t be the same, and I can understand that,” Trump said on Friday, adding that he knows his stake has been "whittled down" in recent months.
Trump maintains a roughly 60% interest in DJT. At current levels, Trump Media boasts a market cap of about $3.3 billion, giving the former president a stake worth around $2 billion. Right after the company's public debut, Trump's stake was worth just over $4.5 billion.
Trump Media went public on the Nasdaq in late March after merging with special purpose acquisition company Digital World Acquisition Corp. But the stock has been on a bumpy ride since, with shares oscillating between highs and lows as the moves have typically been tied to a volatile news cycle.
In June, the stockpopped (then fell) after current commander in chief Joe Biden stumbled in his first presidential debate of 2024 with Trump. Biden dropped out of the presidential race one month later.
Since Biden's announcement, shares have remained under pressure as Vice President Kamala Harris, the Democratic presidential nominee, tracks ahead of Trump in the latest polling. Most recently, the stock plummeted to new lowsfollowing last week's debate as bets on a Harris presidency increased.
In May, Trump was found guilty on all 34 counts of falsifying business records intended to influence the 2016 presidential campaign — a verdict that sent shares down 5% the day after the conviction.His sentencing was recently delayed until Nov. 26.
Shares have fallen about 60% since the company's public debut at the end of March.
Trump founded Truth Social after he was kicked off major social media apps like Facebook (META) and Twitter, the platform now known as X, following the Jan. 6 Capitol riots in 2021. Trump has since been reinstated on those platforms. He officially returned to X in mid-August after about a year's hiatus.
But as Truth Social attempts to take on the social media incumbents, the fundamentals of the company have long been in question.
Last month, DJT reported second quarter results that revealed a net loss of $16.4 million, about half of which was tied to expenses related to the company's SPAC deal. The company also reported revenue of just under $837,000 for the quarter ending June 30, a 30% year over year drop.
Alexandra Canal is a Senior Reporter at Yahoo Finance. Follow her on X @allie_canal, LinkedIn, and email her at alexandra.canal@yahoofinance.com.
Click here for the latest stock market news and in-depth analysis, including events that move stocks
Read the latest financial and business news from Yahoo Finance.