Keeping the Door Open

Apr 3, 2:47 PM EDTbyVictor Tangermann

It’s Interesting How Truth Social Moved to Sell Stock Right Before Trump’s Tariffs Were Announced

Huh.

/ Future Society/ Donald Trump/ Trump Media/ Truth Social

Image by Chip Somodevilla/Getty Images

Just before announcing a major escalation in his tariff war on Wednesday evening — followed by a major stock market wipeout the following morning — president Donald Trump freed up the sale of his Truth Social shares.

As the Financial Times reports, Trump Media and Technology Group (TMTG) revealed that it was planning to sell more than 142 million shares in a late Tuesday filing with the Securities and Exchange Commission.

Most notably, the shares listed in the document include Trump’s 114-million-share stake, which is worth roughly $2.3 billion and held in a trust controlled by his son Donald Trump Jr. Other insiders, including a crypto exchange-traded fund, and 106,000 shares held by US attorney Pam Bondi were also included in the latest filing.

While the filing doesn’t guarantee any future sale of shares, investors weren’t exactly smitten with the optics. Shares plunged eight percent in light of the news, according to the FT, and are down over 45 percent this year amid Trump’s escalating trade war.

The timing of the SEC filing is certainly suspect. Trump’s “liberation day” tariff announcement on Wednesday triggered a major selloff, causing shares of multinational companies and stock futures to crater.

Trump also vowed in September that he wasn’t planning to sell any of his TMTG shares, which caused their value to spike temporarily at the time.

Now that the shares are up for grabs, the president has seemingly had a change of heart — or, perhaps, is getting cold feet now that the economy is feeling the brunt of his catastrophic economic policymaking. It’s also possible Trump was always planning to cash out and leave investors exposed.

Meanwhile, Trump Media released a statement on Wednesday, accusing “legacy media outlets” of “spreading a fake story suggesting that a TMTG filing today is paving the way for the Trump trust to sell its shares in TMTG.” The company said this week’s filing was “routine.”

Experts have long pointed out that if Trump were to sell, it could lead to TMTG spiraling.

It’s still unclear whether the company — which reported a staggering $400 million loss in 2024, while only netting a pitiful $3.6 million revenue — will realize the mass sale of millions of shares.

But even just the suggestion appears to have spooked investors.

“In this offering it says the Trump trust could sell shares — it doesn’t necessarily mean that they will,” Morningstar analyst Seth Goldstein told ABC News. “It signals to the market that they could.”

“This leaves it up in the air if and when a share sale will happen,” he added.

In short, instead of building a viable business that generates meaningful revenue to reflect its valuation, TMTG still feels more like an enrichment scheme for Trump and his closest associates.

“Trump Media has been pretty unsuccessful at creating an operating business model, but they have been quite successful at selling their stock,” University of Florida finance professor Jay Ritter told ABC News.

More on TMTG: Trump’s Failing Truth Social Was Doing Much Better Under Biden