Trump Media Shares Drop as SEC Filing Opens Door for $2.3 Billion Trump Stake Sale:

Shares of Trump Media and Technology Group (TMTG), trading under the ticker DJT, fell 7.4% on Wednesday after the company filed paperwork with the U.S. Securities and Exchange Commission (SEC) that could allow former President Donald Trump to sell his entire $2.3 billion stake.

The late Tuesday filing outlined plans to offer over 142 million shares “from time to time,” including Trump’s personal holding of 114 million shares held in a trust managed by his son, Donald Trump Jr. This marks the first time Trump's full stake has been made eligible for public sale.

Company Denies Immediate Sell-Off

In a Wednesday morning post on Truth Social, TMTG sought to downplay the filing, calling it “routine” and denying that it indicated any upcoming sell-off by Trump. Despite this, the timing and scope of the disclosure triggered alarm among investors.

Market Jitters Ahead of “Liberation Day”

The filing coincided with growing anxiety about Trump’s upcoming announcement on “reciprocal” tariffs, scheduled for the same day in the Rose Garden. The White House has branded the day “Liberation Day,” hinting at major economic policy shifts that could affect trade and market stability. Analysts warn of a potential trade war and ripple effects across global markets.

TMTG’s Rocky 2025 Performance

Trump Media’s stock has already dropped more than 40% in 2025 amid volatility linked to Trump’s trade policies and investor uncertainty. Though TMTG was recently listed on the NYSE’s new Texas platform, its main trading remains on the Nasdaq.

Previously, the stock had surged after Trump publicly stated he would not sell his shares. On that day, DJT trading was halted twice by Nasdaq due to rapid fluctuations, leading Trump to criticize the exchange for interfering.

Retail Investors Make Up Majority of DJT Holders

The majority of DJT shareholders are retail investors and Trump supporters. The company reported about 650,000 shareholders as of October, most of whom hold small amounts of stock. Only 2,100 own more than 5,000 shares, and fewer than 1,000 hold over 10,000 shares.

Mounting Losses and Leadership Risk

Despite its popularity among retail investors, TMTG continues to face financial struggles, reporting a $19.2 million net loss in the third quarter. The inclusion of Trump’s full stake in the new SEC filing may further shake investor confidence at a time when the company is navigating political and economic uncertainty.