Trump Media Stock Plunge Continues After Lockup Agreement Expires

Trump Media shares fell to their lowest price on Monday since 2021. This comes days after former President Donald Trump and other company insiders received a go-ahead to start selling their stakes with Trump as the majority owner.

The shares, listed on Nasdaq as DJT, dropped another 10% on Monday, closing at $12.15. This marks six consecutive sessions of decline for Trump Media & Technology Group. Since restrictions on insider selling were lifted last week, the stock has fallen 17%.

The share price of Trump Media has plummeted almost 85% since the company reported a surge during its public trading debut in late March, according to Reuters.

Monday's decline was the lowest since before October 2021, when news concerning the planned merger between blank-check firm Digital World Acquisition and Trump Media caused DWAC shares to soar more than 350%, NBC News reported.

Shares experienced a decline at that point but gained momentum again in early 2024 amid anticipation that the merger with Trump Media would push through.

In March, Trump Media's market capitalization exceeded $10 billion, but it has since fallen to $2.5 billion. The former president owns 57% of the company's outstanding shares, worth approximately $1.4 billion.

Lockup agreements previously restricted Trump and other company insiders from selling their shares in the first few months after Trump Media went public. But those restrictions ended Thursday, giving Trump and the other insiders a way to sell their shares without violating any agreement.

Following the lockup's expiration, trading volume surged significantly. On Thursday, over 14 million shares were traded, and nearly 22 million were exchanged on Friday. The exchanges exceeded the 30-day average of 8.3 million shares.

Defending the company's business when asked to comment on the stock's latest movement, a Trump Media spokesperson said, "Trump Media ended last quarter with $344 million in cash and cash equivalents and zero debt while launching an in-app streaming platform on our custom-built content delivery network."

"With further innovations planned soon, TMTG is optimistic about our growth strategy," the spokesperson added.

Earlier this month, Trump announced he would not sell his shares in the company, which contributed to a rally in the stock price. However, other early investors, including DWAC sponsor ARC Global and United Atlantic Ventures — controlled by two former contestants from Trump's reality show "The Apprentice" — did not make similar commitments.