Shares of Trump Media & Technology Group fell more than 5% in premarket trading on Friday, after a ban preventing former President Donald Trump from selling shares in the Truth Social parent firm expired, even as Trump said he would not sell his stake.
The former president has vowed not to sell his stake.
Trump Media shares dropped below $14 as of 9:15 a.m., following another dip to a third-straight record low after closing down nearly 6%.
A lockup period prohibiting Trump from offloading any of his roughly 60% stake in the company ended on Thursday, after the stock met a requirement of closing above $12 per share for at least 20 out of 30 trading sessions beginning Aug. 20.
The ban’s expiration also allows other shareholders who own 5% or more of shares or those who serve in high-level management roles to sell their shares.
Trump said last week he has “absolutely no intention” of selling his shares in the Truth Social parent company, whose shares are down more than 18% this week.
The value of Trump’s stake—totaling 114.75 million shares—dropped from $2 billion last Friday to $1.6 billion as of Thursday’s close.
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81.4%. That’s how much the value of Trump Media’s shares has decreased since hitting a high of $79.38 on March 25.
Trump Media is the worst-performing stock on the Russell 1000 Index since Aug. 5, according to the Bespoke Investment Group.
Trump Media’s public trading debut in March started a lockup period, a standard procedure for freshly public firms that require the company to trigger one of three factors to end the ban. In a Securities and Exchange Commission filing, Trump Media said the ban would be lifted after the end of the stock’s first six months of trading as its own entity, after shares traded about $12 for any 20 of 30 trading sessions starting Aug. 23, or as a transaction—like a merger—in which shareholders could trade their holdings at the same price. Despite the ban being lifted, it will likely be “very difficult” for Trump to sell his shares, Bloomberg reported, because he faces additional regulatory restrictions.
After losing about $106 million from Trump Media’s decline on Thursday, Trump has an estimated net worth of about $3.8 billion. His fortune swelled to over $8 billion from about $4.1 billion when the company went public in March.