ARC Global Investments, a major investor in Trump Media & Technology Group DJT, has drastically reduced its stake in the company.
What Happened: According to a regulatory filing on Friday, ARC Global and its manager, Patrick Orlando, now hold a mere 0.01% stake in Trump Media, the parent company of Truth Social.
This is a significant decrease from their previous holding of over 5% or more than 11 million shares in September.
Orlando, the former CEO of Digital World Acquisition Corp., the SPAC that took Trump Media public, was removed from his role before the deal was completed.
In July, the U.S. Securities and Exchange Commission (SEC) sued Orlando, alleging securities fraud for false and misleading statements as CEO of Digital World Acquisition.
In September, a Delaware judge ruled that Trump Media had violated an agreement with ARC Global. The ruling stated that the fund should receive over half a million additional shares before the expiration of a lock-up on insider sales.
Why It Matters: President-elect Donald Trump currently holds a 57% stake in Trump Media.
On Election Day, Trump Media reported a 6% year-over-year decrease in its third-quarter net sales, which stood at $1.01 million, with all revenue coming from advertising on the Truth Social platform.
Earlier this month, Trump announced that he had no plans to sell his stake in the Truth Social parent, causing the company’s stock to soar.
Meanwhile, on Wednesday, it was reported that Trump Media’s CFO and two other insiders sold millions of dollars worth of shares following the election.
Price Action: DJT shares ended Friday up 4.11%, closing at $28.10. However, in after-hours trading, the stock dipped 0.57% to $27.94 at the time of writing, according to data from Benzinga Pro.
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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
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