Republican presidential candidate Donald Trump told reporters on Friday that he is not selling his majority stake in the company he owns Truth Social and will not leave the social media platform he built.
Shares of Trump Media & Technology Group surged 18% following his remarks.
Trump owns approximately 57% of Trump Media, valued at US$1.5 billion. Stocks fell this week The decision came after his televised debate with Democratic rival Vice President Kamala Harris.
The surge in stocks on Friday comes after several weeks of volatility. steady decline That's ahead of key dates this month when Trump and other company insiders will be allowed to sell their shares.
“No, I'm not selling it,” the former president said in response to a question from Reuters. “I'm not giving it up. I love it. I think it's wonderful.”
Trump Media's value has surged to nearly $10 billion since it was listed on the stock market in March. Trump Media's stock is popular among retail traders and is seen as a speculative bet on his chances of securing a second four-year term as president.
However, since its listing, Trump Media shares have lost most of their value, with losses accelerating in recent weeks after President Biden abandoned his re-election bid and Trump lost a huge lead in opinion polls ahead of the November 5 presidential election.
Under provisions related to Trump Media's listing, Trump and other insiders will be allowed to sell stock later this month, potentially flooding the market with additional shares.
If the stock price remains at $12 or higher for any 20 trading days beginning on August 22, Trump will be free to sell the shares starting on September 20. Otherwise, he is eligible to sell the shares starting on September 26.
The stock was at $17.89 on Friday after Trump's comments, raising his stake to nearly $2 billion. Forbes values Trump's wealth at $3.7 billion.
Trump Media's Revenue That's the equivalent of two Starbucks coffee shops, and strategists say its $3.6 billion stock market value is disconnected from its business fundamentals. It posted a loss of $869,900 in its most recently reported quarter, ended June 30.
The upcoming lock-up expiration related to Trump's shares “is something that many on the Street have been keeping an eye on for weeks, if not since the very beginning of this,” Jay Woods, chief global strategist at Freedom Capital Markets, said ahead of Trump's statement that he would not sell the shares.
Earlier this month, a New York judge delayed Trump's sentencing in a criminal hush-money case until after the election on Nov. 12, just months after the U.S. Supreme Court's landmark ruling on presidential immunity that eased pressure over legal fees at least in the short term.
