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Former President Donald Trump on Friday said he “absolutely” won’t sell his shares of Trump Media & Technology Group as his window to do so nears.
“The reason I built it is because I don’t want to have my voice shut down,” Trump said during a press conference at his golf course near Los Angeles. “A lot of people think that I will sell my shares, you know, they’re worth billions of dollars, but I don’t want to sell my shares. I don’t need money.”
Trump’s stake in the public company behind his right-wing social media site Truth Social is under a six-month lockup period that could end as early as Sept. 20 — if the stock stays above $12 for for any 20 trading days starting Aug. 22. At that point, Trump could sell all or part of his holdings. If shares fall below $12, then the first day Trump would be able to sell would be Sept. 25, regardless of the stock’s value.
When Trump gets the green light, he will be able to offload his 114.75 million shares of Trump Media, or about 60% of the company’s outstanding stock. The Republican presidential candidate stands to make upwards of $2 billion from the stock sale — although the value of those returns depends on the share price.
“As long as my voice is on there, it’s gonna always be good,” Trump added, noting that investors are worried he’ll sell his stock. “But I have absolutely no intention of selling.”
Trump Media stock gained 25% on Friday, reaching $20 per share for the first time since late August. In the minutes after Trump’s comments were publicly aired, the stock jumped by roughly $4 per share.
John Rekenthaler, vice president of research at Morningstar (MORN) previously called DJT an “affinity stock” — one that trades on people’s feelings and perceptions of the former president, rather than its business performance. Rekenthaler has warned that Trump Media stock would “go to zero or something close to it” if Trump were to lose the presidential election in November.
On Wednesday, for example, the stock slid after Trump found himself playing defense on issues including abortion, often playing into his Democratic rival’s hand and appearing rattled. In June, the stock soared based on his strong debate performance against President Biden, and after an assassination attempt at a campaign rally in Pennsylvania in July.
The company itself has noted in regulatory filings that its “success depends in part on the popularity of its brand and the reputation and popularity” of Trump, and that “adverse reactions to publicity relating to [Trump], or the loss of his services, could adversely affect TMTG’s revenues and results of operations.”
