Insider Selling Sinks Trump Media & Technology Group’s Share Price by 18.4%

New York, NY- On Monday, shares of Trump Media & Technology Group dropped by 18.4% after the parent company of Donald Trump’s social media network announced that it would allow insiders to sell their shares much earlier than previously agreed upon. The decision came as a result of a filing with the SEC, in which the company revealed plans to allow the potential sale of millions of restricted shares held by investors through warrants that can be converted into common stock.

Trump Media & Technology Group recently became a publicly traded company through a SPAC merger with Digital World Acquisition Corp. on March 25. The company’s primary asset is Trump’s social media network, Truth Social. Lockup periods and warrant restrictions are put in place to protect newer investors from insiders selling off their stakes all at once. However, with this amendment, around 21.5 million shares will be sold by insiders, potentially diluting existing shareholders by over 15%.

The anticipation of new shares flooding the market has led to an 18% drop in the company’s shares. With the possibility of significant dilution, some investors may have decided to sell their shares in response to the news. Despite this setback, Trump Media remains optimistic about its future growth prospects and plans to continue expanding its operations in the social media space.