Shares of Donald Trump‘s media and technology firm, Truth Social‘s operator, plunged by as much as 12% on Monday, marking a continuation of the recent selloff.
This downturn has significantly diminished the value of Trump’s stake in the company, reducing it to $2.9 billion.
Despite a strong debut in March, investor sentiment towards Trump Media & Technology Group has soured in light of recent disclosures of substantial financial losses.
The company’s stock closed 8.4% lower at $37.17 on Monday, a stark contrast to its record high of $79 during its debut.
The persistent decline in April reflects mounting concerns about the company’s financial stability and ability to meet its liabilities.
While Trump could potentially sell his shares to raise funds for his 2024 presidential campaign and legal expenses, lock-up restrictions for six months could hinder such actions.
Trump, who owns approximately 78.75 million shares in the company, has witnessed a sharp decline in the valuation of his stake from around $6 billion last month.
The market value of Trump Media & Technology Group now stands at approximately $5.55 billion, falling below the value of Trump’s holdings.
However, short-sellers have found solace in the stock’s decline, with about 4.75 million shares held in short interest.
Monday’s drop resulted in short-sellers making approximately $16 million in profits, though they remain significantly down for the year.
