The value of Trump's social media shares significantly surges following Donald Trump's declaration of not offloading his holdings.
Trump and key figures from Trump Media & Technology Group, which owns Truth Social, will have the liberty to offload their shares as early as next week, once the lock-up period expires.
During a press conference, Trump dismissed any rumors of selling his shares, saying, "Nope, not selling. I love it."
These remarks led to a 25% surge in the company's share price on Friday afternoon, prompting a trading halt due to volatility. By the end of the day, the stocks had risen by 19%.
Addressing rumors about his departure, Trump commented, "Nah, I'm not leaving. They're down because they think I'm leaving, but I'm sticking around."
According to regulatory filings, the lock-up period will expire on September 19, provided the closing share price stays above $12. This would enable Trump to sell his shares. Experts, however, caution that selling a significant portion of his stock could potentially crash the share price.
It's uncertain if Trump intends to offload a minor portion of the company as well.
As the majority shareholder, Trump holds 57% of the outstanding shares in Trump Media. His 114.75 million shares were valued at $1.8 billion based on the closing price from the previous day.
Trump Media's value has seen a significant drop in recent months, primarily due to apprehensions about the impending expiration of the lock-up restriction and polls indicating a tight race for the presidency.
The shares plummeted to unprecedented lows earlier this week following Trump's less than impressive performance in the debate.
Despite Trump's reassurances about not selling his shares, investors remain interested in potential business opportunities, leading to speculation about his investment strategies. With the lock-up period ending soon, there's a significant chance for key figures in Trump Media & Technology Group to invest their profits back into the company.
