On Friday, shares of Trump Media and Technology Group experienced a drop during midday trading. This came after Donald Trump, soon to be President, moved his entire stock holding into a revocable trust, as disclosed in a recent regulatory filing.
Trump handed over nearly 115 million shares, with a predicted value of approximately $4 billion, to the Donald J. Trump Revocable Trust as a “bona fide gift,” according to the filing with the Securities and Exchange Commission on Thursday. These shares comprise more than half of the company’s stock.
The reasons behind Trump’s decision to transfer the stock remain unclear. However, Donald Trump Jr. is the sole trustee, having full control over voting and investment decisions for the securities held by the trust.
By midday, Trump Media shares had dipped approximately 2%, pricing them at $34.68 apiece, though earlier in the day, they had sunk by about 6%.
Since it hit the market in March, the stock has been highly unpredictable. On its debut, the stock hit intraday peaks nearing $80, but by September, it slumped to all-time lows as Trump and other insiders were permitted to sell shares after the expiration of standard lock-up agreements. As of now, Trump hasn’t sold any of his shares.
The company’s stock price has seen significant fluctuations, swinging in response to various news events surrounding Trump. The shares took a hit after Trump’s conviction in a hush money trial in May but spiked following an assassination attempt in July. They rose again with his re-election victory in November, despite the company posting a $19.2 million loss in the third quarter.
Trump Media was established by Trump following his bans from Twitter and Facebook in the wake of the January 6, 2021, Capitol riot.
