DJT shares fell 13% as the sell-off in Trump Media shares accelerated

shares Trump Media and Technology Group The company’s stock fell more than 13% on Tuesday, extending the stock’s decline following the conviction of former President Donald Trump, the company’s majority shareholder.

Shares of Trump Media, which trades under the symbol “DJT,” have fallen about 40% since May 30, when a New York jury found Trump guilty of 34 felony counts of falsifying business records.

Tuesday’s sell-off coincides with a June 18 deadline that could see some of the company’s investors exercise share warrants.

in Deposit Trump Media disclosed to the Securities and Exchange Commission on April 15 its plans to offer approximately 21.5 million shares of issuable common stock “upon exercise of the warrants.”

Trump Media’s registration statement has not yet been declared effective by the Securities and Exchange Commission. Until this happens, the shares you are seeking to register cannot be sold. But the registration statement notes that holders of Trump media warrants can exercise them on a “cashless basis” starting Tuesday and until the registration statement becomes effective.

The company on Tuesday also amended its registration statement to warn investors that there is little the company can do to prevent former President Donald Trump from using other social media platforms, other than the company’s signature Truth Social network.

“If TMTG disagrees with President Donald J. Trump about the scope of his obligation to use or first post on Truth Social, TMTG lacks any meaningful remedy with respect to such disagreement,” Modified lines He says.

The company warns that such a scenario “could have a material adverse impact on TMTG’s business and/or operations.”

The warning comes just weeks after the former president — who uses Truth Social almost exclusively to make his public statements — joined the social media app TikTok.

Meanwhile, Truth Social has struggled to maintain its small user base. The average number of monthly visits to the social media site from May 2023 to April 2024 was 39% lower than the previous 12-month period, according to digital intelligence platform Sameweb.

Trump Media shares also took a hit last week, falling more than 5% on June 10 when the company filed its re-audited financial statement after its last auditor was accused of fraud.

Trump Media and Technology Group disclosed a net loss of $327.6 million and total revenue of $770,500 in the first quarter of the year in its latest earnings report, filed in May.

The company’s market cap is about $5.4 billion as of 2:30 PM ET.