By Cheta Enyoghasi
Donald Trump has lost around $4 billion on his Truth Social holding since May, and he may suffer additional losses once selling restrictions on the company are eased later in September.
The former president owns around 115 million shares of Trump Media & Technology Group, Truth Social’s parent firm. It went public in March, following a merger with a special-purpose acquisition vehicle.
TMTG shares reached an intraday high of $79 on their market debut and traded at $54 on May 9, but have since fallen 68%, hovering around a record low of approximately $17.
The huge sell-off has reduced the right-wing social media company’s market value from around $10 billion in May to below $3.5 billion. That is Trump’s roughly 60% stake from $6 billion to $2 billion during the same period.
The decline reflects a shift in the presidential contest, with Vice President Kamala Harris replacing President Joe Biden as the Democratic nominee.
Harris is largely regarded as a stronger threat to Trump’s reelection prospects – the two are almost even in recent surveys, but Trump has maintained a consistent lead over Biden.
And, after a year-long break, Trump has resumed posting on Elon Musk’s X, which is likely Truth Social’s main competitor.
The ex-president’s use of his own social-media site rather than the platform formerly known as Twitter was viewed as one of its most significant advantages, particularly if he regained office.
