President-elect Donald Trump says that he has no intention of selling his stake in Truth Social’s parent company, despite the stock’s impressive performance following the election.
What Happened: Trump has demanded investigations into alleged “market manipulators or short sellers” who are supposedly spreading misinformation about his plans to sell shares in Trump Media. This announcement was made through a post on Truth Social on Friday.
The stock of Trump Media experienced a 15% increase by late Friday afternoon. Both the Trump campaign and Trump Media did not respond to Business Insider’s request for comments.
“There are fake, untrue, and probably illegal rumors and/or statements made by, perhaps, market manipulators or short sellers, that I am interested in selling shares of Truth. THOSE RUMORS OR STATEMENTS ARE FALSE. I HAVE NO INTENTION OF SELLING! I hereby request that the people who have set off these fake rumors or statements, and who may have done so in the past, be immediately investigated by the appropriate authorities,” Trump wrote in the post.
“Truth is an important part of our historic win, and I deeply believe in it. Thank you for your attention to this matter. MAKE AMERICA GREAT AGAIN!” he added.
Despite its tumultuous past, Truth Social has witnessed substantial growth in the run-up to the election, even overtaking the valuation of Elon Musk’s X, despite its modest financials. As of last Friday, the market capitalization of Trump Media was approximately $6.5 billion.
Trump, who owns a majority stake in the company with 115 million shares, has his investment valued at around $3.7 billion. On Election Day, the company disclosed its Q3 earnings, which included revenues of $1 million and a net loss of $19.2 million.
The company also reported having $672.9 million in its balance sheet, which will be used for the expansion of the recently launched TV-streaming platform, Truth+.
Why It Matters: The refusal of Trump to sell his shares in Truth Social’s parent company, amidst a surge in stock prices, indicates his confidence in the company’s future prospects.
His call for investigations into “market manipulators or short sellers” suggests his commitment to maintaining the integrity of the company’s stock. The significant growth of Truth Social leading up to the election, despite its modest financials, further underscores the potential of the company.
The launch of the TV-streaming platform, Truth+, is another step forward in the company’s expansion plans.
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