Trump Media shares drop after warning the president’s trust could sell stock

Trump Media‘s stock slid on Wednesday after the company disclosed in a securities filing the possibility of significant stock sales, including by insider shareholders such as the president’s trust.

The parent company of Truth Social said in a filing dated April 1 that the company could soon sell roughly 8.4 million shares of common stock related to existing warrants issued during the initial public offering. The company said insiders and major stakeholders could also sell up to about 134 million shares “from time to time.”

That includes the more than 114 million shares held by the Donald J. Trump Revocable Trust.

The stock closed down 7.4% on Wednesday.

President Donald Trump has previously said he does not plan to sell his stake in the company. His son Donald Trump Jr. is in charge of the revocable trust.

“The sale of the Resale Securities being offered pursuant to this prospectus, or the perception that these sales could occur, could result in a significant decline in the public trading price of our Common Stock,” the prospectus warned.

The company said the total shares available for resale amounted to 129.2% of the company’s public float of shares, which is a measure of the amount of stock currently available for trade.

In a statement, the company said the filing does not indicate that insider sales are planned.

“Legacy media outlets are spreading a fake story suggesting that a TMTG filing today is paving the way for the Trump trust to sell its shares in TMTG. To be clear, these shares were already registered last June on an S-1 form, and today TMTG submitted a routine filing that re-registers them on an S-3 form in order to keep the Company’s filings effective. In fact, there currently is no open window for any affiliate to sell shares,” the statement said.

Trump Media stock has been highly volatile since it went public through a combination with a special purpose acquisition company last year. The stock is down about 70% from its postmerger highs.

Still, the shares are worth a lot of value on paper, especially relative to the company’s meager revenue. Shares were trading at around $19 per share Wednesday morning, putting the notional value of the trust’s position at more than $2 billion.

The company warned in the filing that insiders could profit from a sale of stock even if doing so drives down the price.

“Selling Securityholders may still experience a positive rate of return on the shares of Common Stock purchased by them due to the lower price per share at which such shares of Common Stock were purchased as referenced above, but public stockholders may not experience a similar rate of return on the Common Stock they purchased if there is such a decline in price and due to differences in the purchase prices and the current market price,” the prospectus said.

The underlying business of Trump Media is much smaller than other public social media companies. The firm reported less than $4 million in total sales in 2024, with a net loss of about $401 million. The company said earlier this year it plans to expand into financial services.