Trump Media & Technology Group Stock Slides As Lockup Expiration Looms: What's Going On?

Trump Media & Technology Group Corp DJT shares are trading lower Thursday as lockup restrictions that have prevented certain insiders from selling shares are set to expire.

What To Know: Trump Media, the parent company of social media platform Truth Social, has been popular among retail investors since special purpose acquisition company Digital World first announced intentions to merge with the company. Trump Media made its public debut in late March. The stock traded as high as $79 before pulling back and trending lower.

Former President Donald Trump, who is the majority shareholder of Trump Media, as well as several other insiders, were restricted from selling any shares for approximately 180 days due to the lockup agreement. The lockup period expires Thursday, per CNBC.

Trump Media shares have been very volatile since the start of the year. Just last week, the stock jumped as much as 25% after Trump said he had “absolutely no intention of selling” any of his stake in the company. Trump reportedly owns close to a 57% stake in Trump Media. As of Wednesday’s close, the Republican presidential nominee’s stake was worth approximately $1.8 billion.

Trump Media shares fell 3.22% on Wednesday, a day ahead of the expiration. On Tuesday, shares slid more than 6% after a Delaware judge ruled that Trump Media breached a contract with ARC Global, ruling that the company must grant the early investor a larger portion of its stock than it planned to.

ARC Global reportedly holds a 4.77% stake in Trump Media. Those shares are likely going to be freed up for a potential sale once the lockup period expires on Thursday.

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DJT Price Action: Trump Media shares were down 3.81% at $15.03 at the time of publication, according to Benzinga Pro.

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