Trump’s Business Partners Are Dumping Their Stock as Fast as They Can
Insider trading restrictions expired for Trump Media last week, effectively opening the floodgates for investors to sell off their stock in wildly unprofitable company—and sell they did.United Atlantic Ventures LLC, one of the largest shareholders in Trump Media & Technology Group, dumped 11 million shares in the company shortly after a lockup agreement preventing insiders from selling their shares lifted on September 19, according to a regulatory filing. The amount that UAV received for its shares wasn’t reported, but the price tag could have ranged anywhere from $128 million to $170 million, according to CNBC. The group held a 5.4 percent stake in the Trump tech company but left itself with just 100 shares in hand after the transaction. The only other group that owns more than 5 percent of Trump Media is ARC Global Investments II LLC, with just over 11 million shares.Trump Media fell dramatically in the days following lockup expiration, with shares spiraling to a fraction of their value at the company’s initial public offering in March. Even before the restrictions ended, Wall Street strategists were eyeing the behavior of the company’s investors to get a better read on Trump Media’s health.“Even if Trump doesn’t, it would be interesting if other insiders begin selling because that would be a clue as to what they think his mindset is about selling,” Steve Sosnick, chief strategist at Interactive Brokers, told Reuters last week.It’s easy to see why investors want to sell. Trump Media’s biggest brand is Truth Social, the social media network founded by the former president after he was banned from Twitter for stoking an insurrection. Truth Social has struggled to attract users, advertisers, or revenue of any kind; in the second quarter of 2024 it brought in less than $1 million in revenue and posted a $16 million loss. Donald Trump—who owns roughly 57 percent of the company with 115 million shares—has insisted he has no intention of selling off his stock, though doing so could provide a cash infusion for the legally hamstrung Republican presidential nominee. However, it would devastate investors’ confidence in the company and could spell the end for Truth Social.Trump Media has been criticized as another iteration of a long line of grifts this year as the former president has fought off numerous legal charges that have added up to half a billion dollars in expenses and debt. Other Trumpian hustles included launching a remarkably ugly sneaker and selling NFT trading cards of himself dressed in superhero costumes and astronaut suits. He also made some quick cash on a limited edition, $60 God Bless the USA Bible co-promoted by “God Bless the USA” singer Lee Greenwood, and stamped his name on a new cryptocurrency platform headed by his two sons, Eric and Don Jr., which even Trump’s allies have criticized as a “huge mistake.”
Insider trading restrictions expired for Trump Media last week, effectively opening the floodgates for investors to sell off their stock in wildly unprofitable company—and sell they did.
United Atlantic Ventures LLC, one of the largest shareholders in Trump Media & Technology Group, dumped 11 million shares in the company shortly after a lockup agreement preventing insiders from selling their shares lifted on September 19, according to a regulatory filing.
The amount that UAV received for its shares wasn’t reported, but the price tag could have ranged anywhere from $128 million to $170 million, according to CNBC. The group held a 5.4 percent stake in the Trump tech company but left itself with just 100 shares in hand after the transaction. The only other group that owns more than 5 percent of Trump Media is ARC Global Investments II LLC, with just over 11 million shares.
Trump Media fell dramatically in the days following lockup expiration, with shares spiraling to a fraction of their value at the company’s initial public offering in March. Even before the restrictions ended, Wall Street strategists were eyeing the behavior of the company’s investors to get a better read on Trump Media’s health.
“Even if Trump doesn’t, it would be interesting if other insiders begin selling because that would be a clue as to what they think his mindset is about selling,” Steve Sosnick, chief strategist at Interactive Brokers, told Reuters last week.
It’s easy to see why investors want to sell. Trump Media’s biggest brand is Truth Social, the social media network founded by the former president after he was banned from Twitter for stoking an insurrection. Truth Social has struggled to attract users, advertisers, or revenue of any kind; in the second quarter of 2024 it brought in less than $1 million in revenue and posted a $16 million loss.
Donald Trump—who owns roughly 57 percent of the company with 115 million shares—has insisted he has no intention of selling off his stock, though doing so could provide a cash infusion for the legally hamstrung Republican presidential nominee. However, it would devastate investors’ confidence in the company and could spell the end for Truth Social.
Trump Media has been criticized as another iteration of a long line of grifts this year as the former president has fought off numerous legal charges that have added up to half a billion dollars in expenses and debt. Other Trumpian hustles included launching a remarkably ugly sneaker and selling NFT trading cards of himself dressed in superhero costumes and astronaut suits. He also made some quick cash on a limited edition, $60 God Bless the USA Bible co-promoted by “God Bless the USA” singer Lee Greenwood, and stamped his name on a new cryptocurrency platform headed by his two sons, Eric and Don Jr., which even Trump’s allies have criticized as a “huge mistake.”
