Trump Media and Technology Group shares dropped on Friday after President-elect Donald Trump transferred nearly 114.75 million shares, worth about $4 billion. The transfer accounts for more than half of the company’s stock, according to a Securities and Exchange Commission filing, which described the transfer as a “bona fide gift” to the Donald J. Trump Revocable Trust.
It is not known why Trump transferred the shares, but Donald Trump Jr. is the sole trustee of the trust and holds all the voting and investment power over the shares.
Shares in Trump Media’s dropped by about 2% during midday trading, changing hands at $34.68 per share. The stock had earlier dipped to a low of 6%. Since it began trading publicly in March, the stock has been very volatile, having shot up to nearly $80 on its first day of trading and then dropping to an all-time low in September. The stock’s fluctuations have been tied to developments involving Trump, including his conviction in a hush-money trial in May and a surge in the wake of an assassination attempt on Trump in July.
Trump Media is the parent company of the Truth Social platform founded by Trump after he was banned from Twitter and Facebook following the January 6 Capitol riot. Even though the stock has fallen in recent times, the company still boasts a market capitalization of around $7.7 billion because retail traders are speculating on the possibility of Trump’s re-election in 2024.
