Pulling the Ripcord
Shares of Donald Trump’s social media meme stock tumbled yet again today, sinking over 16 percent Monday morning.
The timing of the latest shellacking is particularly interesting: it comes after Trump made the first moves to cash out, likely leaving investors — who have already seen their holdings crumble — out to dry.
As Bloomberg reports, Truth Social owner Trump Media & Technology (TMTG) filed to register shares, including ones that are linked to warrants — a sign that Trump and other executives are looking to cash out far sooner than September, at which point the obligatory six-month hold on sales would be over.
Trumpet Section
The news comes after TMTG shares have been on a precipitous decline, slumping to less than $27 — significantly less than half of what they were worth around the time of the merger last month.
The drop has resulted in the former president’s net worth dropping by several billion dollars in just three weeks.
Despite the grim outlook, Trump and his collaborators could still hold on to millions of shares, likely planning to eventually sell them for many hundreds of millions of dollars, according to Bloomberg.
The company, however, still needs permission from the US Securities and Exchange Commission.
Trump would also need the green light from TMTG’s board before selling — which shouldn’t be too difficult, given his personal standing.
Analytists have held that investors looking to increase their money should stay away from the former president’s meme stock, calling it a “scam.”
Supporters, however, have glommed onto the opportunity to line Trump’s pockets and aid him in his quest to be reelected later this year.
They’re right that Trump sure could use an injection of cash right about now — investors be damned.
More on Trump Media: Trump Supporters Horrified as the Value of Their “Truth Social” Stock Evaporates
Source Agencies
