Trump is days away from dumping his Trump Media shares for a massive payday

• Donald Trump may sell his Trump Media shares soon, potentially getting a huge payout.

• The lock-up period for Trump Media shares ends on September 25, or earlier if certain conditions are met.

• Trump’s stake in Trump Media is worth about $2 billion, more than half of his total net worth.

Donald Trump is just days away from being eligible for a huge payout.

The potential source of wealth is the Republican presidential candidate’s Trump Media company, which owns his platform, Truth Social. The entity began trading on Nasdaq in March under the symbol DJT.

As part of a “lock-up agreement,” which is a common practice in initial public offerings, Trump was barred from selling his shares in the company for 180 days.

That countdown clock is now ticking down.

The lock-up period, as explained in the company’s regulatory filings, is scheduled to end on September 25, but could also end on September 20 if certain conditions are met.

To be released at the earlier date, the stock price must remain above $12 for 20 trading days during the 30-day period that began on August 23. Despite the stock falling to around $16 last week – its lowest point on record – that condition has been met. Shares are down 60% since mid-July.

Trump owns nearly 60% of the company, and given the company’s current valuation of around $3.3 billion, that means his stake totals around $2 billion.

His stake in the company accounts for more than half of his total net worth, according to Forbes, which estimates Trump is worth about $3.7 billion.

It is unclear whether or not Trump plans to sell his shares, and in an SEC filing, Trump Media explains that if a major shareholder does indicate plans to sell, it could negatively affect stock prices.

“These sales, or the perception in the market that holders of a large number of shares intend to sell shares, could reduce the market price” of the shares, the filing said.

There’s also the issue of Trump not wanting to cash in on his shares with DJT stock at record lows. In recent months, the stock price has been correlated with Trump’s poll numbers, so any sort of recovery in polling could lead to a rebound in the stock — and a more attractive pay package.

And on Friday, Trump insisted he would not sell.

“No, I don’t sell. No, I like it,” Trump said during a news conference in California. That sent stocks soaring for a short time.

Still, Trump could probably use the money right now.

At the beginning of this year, Judge Arthur Engoron ordered Trump and executives at the Trump Organization to pay $454 million plus interest in their civil fraud suit in New York. So far, Trump has paid $175 million in an appeal bond, but if he loses his appeal, he’ll be on the hook for hundreds of millions more.

The story continues

In addition, Trump has already burned through $100 million in attorneys’ fees through March of this year, according to a report by The New York Times.

Trump Media has had a tumultuous ride since going public. With the help of meme stock mania, the company’s stock soared to $70 a share when it first went public, bringing Trump Media’s market cap to $9 billion and raising the Republican candidate’s net worth to $7 billion. dollars.

The company boasted an attractive valuation despite reporting poor earnings and high expenses.

But Trump Media’s stock has been in freefall ever since. And although Trump insisted he won the debate against Kamala Harris, the market reacted resoundingly as if he had lost, ultimately making her responsible for DJT’s latest run to record lows.

Read the original article on Business Insider