MAGA ALERT ! Trump loses 4Bn in 1 Day as Trump’s Truth Social Network Top Staff including CEO Sell their Stock in Massive Dumping of Shares

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Top Truth Social execs—including the CEO—are shedding stock before Trump even can

Donald Trump can’t sell his Truth Social shares due to a lock-up rule.

Donald Trump is in need of a massive payday to cover his legal expenses and presidential campaign, but he can’t tap into his Truth Social stock. At least not quite yet.
On Wednesday, shares dipped below $20 for the first time since Truth Social owner Trump Media & Technology Group merged with a blank check acquisition company in March.

What was once an astronomically overvalued $8 billion venture has lost well over 50 percent of its value in a matter of just six months.

However, Trump is still likely to get away with a major windfall, having made more than $1 billion in earnout shares earlier this year. Despite crashing share prices, he can still easily net another $2 billion as soon as next month by offloading his 114 million shares — roughly 60 percent of the company’s outstanding stock.

It’s not the former reality TV host’s last foray into dubious tech schemes, though. Just this week, he’s been shilling gaudy digital trading cards with his face on them.

Ugly Truth
The news comes after CFO and treasurer Juhan Phillip sold $1.9 million worth of shares, with CEO Devin Nunes and COO Andrew Northwall also dumping stocks.

A special counsel also recently filed a revised January 6 insurrection-related indictment on Tuesday against Trump.

Trump will have to remain patient until at least September 20, at which point a six-month lockup period determined by the SEC is set to expire.

TMTG’s financial performance has been deplorable, reporting a net loss of $58 million last year while only netting $4.1 million in revenues.

And whether the Truth Social owner will manage to scrape together a coherent and money-making business remains as unlikely as ever. The platform has experienced a major user exodus as even its owner has seemingly given up and migrated back to Elon Musk’s X-formerly-Twitter.

“Any upside for the company is dependent on coming up with a business strategy to generate revenue and profits,” University of Florida finance professor Jay Ritter told USA Today. “So far, the company has failed to find a successful strategy.”

In short, Trump’s thinly veiled ruse to squeeze his astonishingly gullible followers for cash is nearing its end — and he’ll likely be laughing all the way to the bank.

But that was then, and its stock has been sinking since: Now investors think Trump Media & Technology Group Corp — the company that runs Truth Social, Trump’s Twitter clone — is worth a mere $4 billion. Today its stock closed at just above $20 a share, the lowest it has been since the company had its equivalent of an IPO in March.

What’s going on?

To start, a caveat we’ve mentioned before: DJT is a meme stock. Investors aren’t valuing it based on the company’s financials, which are very meager at best. They think it’s worth something because other people think it’s worth something, and that collective fantasy will work right up until it doesn’t.

So trying to figure out why DJT is moving up or down on any given day isn’t likely to lead to a satisfactory answer. Mostly you’re going to get something along these lines: \_()_/

Still. We can at least acknowledge that DJT has been sliding for quite some time. So there’s something going on.

One reason Trump’s stock may be moving down is that lots of people who own Trump stock are Trump fans, and/or people betting that Trump will win the November election. But it has been harder to be in one of those groups recently: Since Kamala Harris replaced Joe Biden as Trump’s opponent, Trump has been losing ground in the polls, and now both The New York Times and pollster Nate Silver see him as a slight underdog.

So if DJT is a proxy for Trump’s election chances, it would make sense that it has been limping recently.

The other very plausible reason that Trump stock is moving down is that investors may be worried about Trump selling some of his shares in the company. This could lead to other investors selling, which would have a cascading effect on the share price.

Trump currently owns about 60% of Truth Social, which means his stake is worth about $2.4 billion. He’s been restricted from selling any shares because of a lock-up restriction, which are common in public offerings. But the lock-up period could end as soon as September 20 — hence people trying to get out of the stock before he does.

There are two arguments against that theory, by the way: The first is that the lock-up period has been public knowledge since Truth Social first went public, so why bail now? The second is that Trump knows that if he does sell stock — and particularly if he sells a lot of stock — that the stock will really collapse. Because all but the most die-hard Trump fans will see it as the end of the company.

So there’s a real tension there: Does Trump keep his theoretical $2.4 billion stake intact? Or does he try to turn it into actual money, and risk making the overall value much less?

In any case, it’s possible that both of the ideas above — Trump’s declining political fortune, and the idea that he may be ready to trigger a big sell-off himself — are true. Or maybe there’s something else at work that we have yet to see.

The only thing we know for certain is that if you bought Trump stock in late March and haven’t sold it since then, you are down by more than 50%. We don’t give investment advice around here. But don’t say we didn’t warn you.