Donald Trump has reaffirmed his commitment to Truth Social, the social media platform he founded, stating he has no intentions of selling his majority stake in Trump Media & Technology Group Corp or departing from the platform. This declaration comes amidst recent market volatility and speculation about the company's future.
"No, I'm not selling. I'm not leaving. I love it. I think it's great."
The former president's comments triggered an immediate 18% surge in Trump Media shares, providing a boost to the stock that had experienced a decline following his televised debate with Vice President Kamala Harris. This fluctuation highlights the close connection between Trump's political activities and the company's market performance.
Trump Media & Technology Group, which went public in March 2024, has seen its value reach nearly $10 billion, driven in part by Trump supporters and traders speculating on his potential victory in the upcoming November 5, 2024, presidential election. Donald Trump currently owns approximately 57% of the company.
The timing of Trump's statement is particularly significant as it precedes key dates when company insiders, including Trump himself, will be eligible to sell their shares. According to the company's listing provisions, Trump may be able to sell shares as early as September 20, 2024, if the stock price remains at or above $12 for any 20 trading days starting from August 22, 2024. Otherwise, he becomes eligible to sell on September 26, 2024.
Truth Social, launched on February 21, 2022, was created as an alternative to Twitter after Trump's ban from the platform in January 2021. Despite facing initial technical difficulties and a slow rollout, the platform has maintained a dedicated user base, albeit significantly smaller than major social media networks.
The company has faced various challenges since its inception, including regulatory scrutiny from the SEC, content moderation issues leading to its ban from the Google Play Store, and difficulties attracting major advertisers. Additionally, Trump Media & Technology Group has reported substantial financial losses, reflecting the challenges of competing in the crowded social media landscape.
Despite these obstacles, Trump's continued involvement and the platform's role in amplifying his messages have kept Truth Social in the spotlight. The company has explored expansion into video streaming services, though international growth has been hampered by regulatory concerns.
As the 2024 presidential race intensifies, the interplay between Trump's political career and his media venture will likely continue to influence both the platform's trajectory and its stock performance. The coming weeks, with the potential for insider stock sales, may prove crucial for Trump Media & Technology Group's market position and long-term stability.