Shares of Trump Media & Technology Group (DJT) are down 8% and trading at an all-time low as lock-up restrictions imposed on the stock expire.
The lock-up period, which is expiring six months after the stock’s market debut, has, until now, prevented former U.S. President Donald Trump from selling his shares.
With the lock-up period expiring, there is speculation that Trump, and other early investors, may sell their holdings of the stock, causing the share price to crash.
Trump has said repeatedly that he has no plans to sell any of his shares in Trump Media.
The former U.S. president owns about 60% of Trump Media, which runs the Truth Social platform that is a clone of X, formerly known as Twitter.
While Truth Social has proven to be popular with Trump’s political supporters, the company behind the social media platform has struggled financially.
In recent months, Trump Media has reported a net loss of $327.6 million U.S. and less than $1 million U.S. in revenue. There is speculation the company could go bankrupt.
Trump Media’s stock is now trading at $13.55 U.S. a share, down 83% from a peak of $79.38 U.S. reached shortly after the company went public via a special purpose acquisition company (SPAC) in March of this year.
