Shares of Trump Media hit their lowest level in over a year on Monday, following the expiration of a lockup agreement that had restricted the sale of shares by majority owner Donald Trump and other company insiders.

The stock, trading under the symbol DJT on the Nasdaq, dropped more than 6% in early trading, marking its sixth consecutive day of declines.

DJT stock price down over 80% since March

Since its public debut in March, Trump Media’s share price has fallen by over 80%.

As of Monday morning, the stock was trading at its lowest intraday level since July 2023.

At its peak in March, the company’s market capitalization exceeded $10 billion, but it has since shrunk to around $2.5 billion.

Trump’s nearly 57% stake in the company was worth less than $1.5 billion at the opening of the trading session.

The lockup restrictions, which barred insiders from selling shares for a period after Trump Media’s public listing, expired at the close of trading on Thursday.

Trading volume spiked significantly following the lift of these restrictions, with more than 14 million shares traded on Thursday and 22 million on Friday, far exceeding the 30-day average volume of 8.3 million shares.

By Monday morning, approximately 7 million shares had been exchanged within the first 90 minutes of trading.

Will Trump sell his DJT shares?

Donald Trump, a key figure behind Truth Social and the company’s primary attraction for investors, has stated that he will not sell his shares.

Earlier in September, Trump said, “I have no intention of selling,” causing a brief uptick in the stock price.

However, other early investors, such as ARC Global and United Atlantic Ventures, which together own 11% of DJT shares, have not made similar promises.

The possibility of more stock issuance is also in play after a court ruling in favor of ARC Global, which may entitle the sponsor to more shares.

Invezz had reported earlier this month about the likelihood of Trump wanting to sell his stocks immediately after the expiration of the lock-up agreement as he needs liquid cash to fund his campaign, pay for legal fees, and pay for the past penalties.

The stock has seen fluctuations in its value, partly due to ongoing investigations and regulatory scrutiny surrounding the SPAC merger.

Additionally, Trump will want to sell his stake because of the stock’s performance in the past few months and due to the fluctuations in its value partly due to ongoing investigations and regulatory scrutiny surrounding the SPAC merger.

Investors, followers, and market analysts will be closely monitoring Trump’s actions in the coming days and weeks to gauge the future direction of Truth Social and its standing in the competitive social media landscape.

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