Trump will soon be free to book his own actions

When Truth Social’s parent company, Trump Media & Technology Group, went public in March through a merger with a special-purpose acquisition company, the former president was awarded about 114.75 million shares, or about 59 % of the property. That stake represents more than half of his $4.5 billion net worth, according to the report Forbes, but so far he has failed to profit from his actions.

This is due to a lock-up period that prevents company insiders from offloading shares for about 180 days. While he has not said he plans to sell any of his Trump Media ( DJT ) shares, he will get the green light to do so as early as Sept. 20, when the lockup period expires. If Trump sells shares, he will have to report it in an SEC filing within two days.

The Trump campaign and Trump Media & Technology Group did not immediately respond to a request for comment. When asked about selling his shares, a Trump Media spokesman told Bloomberg on Tuesday that there was “no conceivable sign that he intends to do so.”

The opportunity to offload the stock could be a boon for Trump, whose mounting legal costs have set him back about $100 million, according to New York Times. The blackout period will expire just as Trump is set to be sentenced by a judge after being found guilty of 34 criminal charges in a much-publicized trial. Trump could also use the proceeds from the stock sale to fund his campaign, which he has previously said he might be willing to do.

If he starts offloading his shares, Trump Media stock could sink due to the dilutive effect of the increased offering. The company’s share price closed down less than 1 percent at $22.81 on Friday.

The stock has already been on a wild ride this year. Shares soared 30 percent after the former president survived an assassination attempt in July. However, shares of Trump Media have fallen about 70% from their high of nearly $80 in March, in part because of the company’s declining revenue and a $16 million loss in its most recent quarter.

Trump’s return to rival social media platform X also didn’t help the stock. After being suspended indefinitely in 2021, when X was known as Twitter, Trump was invited back by new owner and backer Elon Musk.

Financial experts said DJT shares serve as a way for investors to bet on Trump’s chances of winning the November presidential election. But the stock has fallen steadily since President Joe Biden ended his re-election campaign and Vice President Kamala Harris became the nominee. Harris accepted the Democratic nomination for president on Thursday. She’s closing the gap on Trump in national polls and prediction markets.