Donald Trump is not selling any of his majority stake in the company that owns Truth Social, and he will not be leaving the social media platform he created, the Republican presidential nominee told reporters on Friday.
Shares of Trump Media & Technology Group rose as much as 30% after his comments before closing down 12%.
Trump owns about 57% of Trump Media, which saw its shares fall this week after his televised debate with Democratic vice presidential rival Kamala Harris.
Friday’s rise in shares follows weeks of steady declines ahead of key dates this month when Trump and other members of the company will be allowed to sell their shares.
“No, I’m not selling,” the former president said in response to a question from Reuters. “I’m not leaving. I love it. I think it’s wonderful.”
Trump Media saw its value at nearly $10 billion after its IPO in March. Trump Media shares are popular among retail traders and are seen as a speculative bet on his chances of securing a second four-year term as president.
Since its listing, however, Trump Media shares have lost most of their value, with losses accelerating in recent weeks after President Biden dropped his re-election bid and Trump lost a large lead in opinion polls ahead of the November 5 presidential election.
Under provisions related to Trump Media’s listing, Trump and other insiders will be allowed to sell shares starting later this month, potentially flooding the market with additional shares.
If the stock price remains at or above $12 for each of the 20 trading days beginning Aug. 22, then Trump will be free to sell shares starting Sept. 20. Otherwise, he has the right to sell shares starting on September 26.
The stock closed at $17.97 on Friday after Trump’s comments, making his stock worth about $2 billion. Forbes estimates Trump’s wealth at $3.7 billion.
Trump Media’s revenue is the equivalent of two Starbucks coffee shops, and strategists say its $3.6 billion stock market value is disconnected from its business fundamentals. It lost $869,900 in the last reported quarter ended June 30.
“There is no foundation behind this company. There is no one path to profitability. It’s just driven by feedback, and hopes and dreams,” said Dennis Dick, a trader at Triple D Trading.
The upcoming expiration of the lock on Trump stocks is “something that a lot of people on the street have seen for weeks, if not since it started now,” Jay Woods, chief global strategist at Freedom Capital Markets, said ahead of the statement. of Trump. that he would not sell it.
A New York judge earlier this month delayed Trump’s sentencing in his criminal hush money case until Nov. 12, after the election, months after the US Supreme Court’s landmark ruling on presidential immunity, easing his at least short-term pressure on legal fees.
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