The stock of Trump Media and Technology Group (TMTG), the parent company of the Truth Social platform, took a major hit recently. It fell by 9% after news broke that President Donald Trump’s trust is preparing to sell up to $2.3 billion worth of shares. This news led to a sharp dip in the company’s stock price, which has seen a 44% decrease in value since the beginning of 2025.
According to a regulatory filing with the Securities and Exchange Commission (SEC), a trust that manages Trump’s stake in TMTG could sell as many as 115 million shares of the company. This news shook investors, who had been following Trump Media’s stock closely due to its high volatility, often referred to as a “meme stock.”
On Tuesday, the company filed with the SEC to register up to 142.5 million shares and warrants for sale. Of these, 114.75 million shares are held by Trump’s trust, which is controlled by his eldest son, Donald Trump Jr. The filing signals a potential shift in the company’s future, but the shares won’t be available for sale immediately. The SEC must first approve the filing for it to be effective.
The drop in stock value follows the announcement that Trump, who owns a multi-billion-dollar stake in TMTG, may soon begin selling shares. Trump Media’s stock has been fluctuating significantly, partly because of the media attention around Truth Social, Trump’s alternative social media platform launched after his ban from major social networks like Twitter and Facebook in 2021.
Trump’s ownership of Trump Media, valued at around $2.1 billion, made him one of the top 500 richest individuals globally, with an estimated fortune of $6.5 billion last year. However, this fortune has since decreased, and Forbes now places his net worth at approximately $4.7 billion.
Interestingly, the move to sell shares comes despite Trump’s previous statements about not selling his stake in the company. In a press conference last year, Trump made it clear that he had no intention of selling his shares, despite the fact that they were worth billions of dollars. “The reason I built it is because I don’t want to have my voice shut down,” Trump stated during the press conference. “A lot of people think I will sell my shares, but I don’t want to sell them. I don’t need money.”
The filing also addresses that the shares being sold had already been registered last June as part of an S-1 form, which allows companies to register their shares with the SEC. The new filing, which re-registers the shares on an S-3 form, is a routine procedure to keep the company’s filings up to date and effective. Trump Media clarified that there is no open window at the moment for any affiliate to sell shares.
Despite the potential sale of shares, Trump Media remains a key player in the growing digital media space. Truth Social, Trump’s platform, continues to expand. The company recently launched a streaming platform offering various investment vehicles and has also established a strategic acquisition fund. Furthermore, TMTG made headlines by being the first company to list on the New York Stock Exchange’s Texas branch.
However, Trump Media has struggled financially. The company reported less than $4 million in sales for the past year and posted a net loss of roughly $401 million. These numbers highlight the difficulties Trump Media faces in turning its massive digital platform into a profitable venture.
The company’s financial challenges are further emphasized by the rapid rise and fall of other political companies in the media space. Newsmax, a conservative TV network, has seen its stock price soar by more than 623% since it debuted on the New York Stock Exchange. However, it has also experienced a dramatic drop of 45% in just a few days of trading, underscoring the unpredictable nature of the market for media companies with strong political ties.
This move by Trump Media is raising eyebrows in the financial world, especially given the company’s uncertain future. While the sale of shares could provide Trump with a substantial cash influx, it also signals potential instability for the company and its investors. Only time will tell if this move will stabilize or further shake up the company’s position in the market.
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