Significant investors are offloading stocks in Trump's Truth Social platform.
Folks associated with Donald Trump's reality series "The Apprentice," who jointly launched his media enterprise, have swiftly offloaded several million shares. As per news sources, Andy Litinsky and Wes Moss, at the helm of United Atlantic Ventures, unloaded over 7.5 million shares of Trump Media & Technology Group within a week. The lock-up agreement, which restrained selling shares for six months, had lapsed. This sale is estimated to be worth approximately $88 million.
The sudden sale isn't unexpected considering the ongoing legal squabble between Litinsky, Moss, and Trump Media. The lawsuit asserts that they made a series of imprudent and wasteful decisions that resulted in substantial losses. The complaint mentions, "Moss and Litinsky have dismally failed in every aspect," and requests the court to oblige them to reclaim their shares. Previously, Litinsky and Moss had filed a suit against Trump, alleging his intention to reduce their shareholding in the fresh company.
Trump: "I don't require the funds"
Before Litinsky and Moss's sale, there were whispers about Trump himself selling shares. However, these apprehensions appear unsubstantiated - last week, Trump said to the media, "People believe I'm going to liquidate my stock. I mean, it's worth astronomical amounts. But I'm not selling my stock. I won't sell my stock. I don't need the money." The looming uncertainty of Trump, as the dominant shareholder, potentially withdrawing from the company and further impacting the stock has lingered for weeks.
According to recent figures, Trump possesses 114.75 million shares of Trump Media. This holding was worth $6.2 billion in mid-May. However, the stock has experienced a steep decline in recent months and hit a record low earlier this week.
Following Thursday's closing price of $13.98, Trump's stake is worth approximately $1.6 billion. The announcement of the share sale led to a dip of approximately 1% in after-hours trading.
In light of the ongoing legal disputes, it's not surprising that Litinsky and Moss chose to sell their shares 'In the' Trump Media & Technology Group. Trump himself has publicly stated that he has no intention of selling his shares, despite rumors to the contrary.
