President-elect Donald Trump took to his social media platform, Truth Social, on Friday to publicly deny rumors that he was considering selling his shares in Trump Media & Technology Group (TMTG), the company that operates the conservative social media network, Truth Social. Trump dismissed the claims as “fake, untrue and probably illegal,” accusing market manipulators or short sellers of spreading the rumors.
“I’m sorry, but there are fake, untrue, and probably illegal rumors and/or statements made by, perhaps, market manipulators or short sellers, that I am interested in selling shares of Truth,” Trump posted on Truth Social at 10:05 a.m. ET. “THOSE RUMORS OR STATEMENTS ARE FALSE. I HAVE NO INTENTION OF SELLING!”
TMTG, which Trump controls with a 56.6% ownership stake, operates Truth Social, a platform created to challenge the dominance of major social media companies like Twitter and Facebook. Truth Social aims to be a free-speech alternative to these platforms, which critics, including Trump, have accused of censoring conservative voices. However, the platform has faced financial difficulties, with reports showing significant losses since its launch.
Trump’s post went further, calling for an investigation into the individuals responsible for spreading the false rumors. “I hereby request that the people who have set off these fake rumors or statements, and who may have done so in the past, be immediately investigated by the appropriate authorities,” he wrote. “Truth is an important part of our historic win, and I deeply believe in it. Thank you for your attention to this matter. MAKE AMERICA GREAT AGAIN!”
Despite Trump’s denial, shares of TMTG, which trade under the ticker “DJT,” saw a significant uptick following his comments, rising more than 16% by 1:15 p.m. ET on Friday. The stock has experienced considerable volatility in recent weeks. After Trump’s win in the 2024 U.S. presidential election, the stock surged by over 30% on Wednesday, only to fall by 23% the following day.
In September, Trump had already dismissed any plans to sell his TMTG shares, despite the expiration of the lockup period for insider stock sales. At the time, he said he had “absolutely no intention” of selling. His holdings in TMTG are reportedly the largest component of his net worth.
However, with Trump’s victory in the 2024 election, there have been growing questions about whether his stake in TMTG could pose a potential conflict of interest, especially given federal ethics rules that require public officials, including the president, to avoid financial interests that could conflict with their official duties. The New York Times has reported that such rules might compel Trump to divest his shares if he assumes office again.
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TMTG has faced significant financial challenges, with the company reporting substantial losses in recent quarters. According to its third-quarter earnings report, released on Election Day, TMTG posted a net loss of $19.2 million on revenue of just $1 million. The company also reported interest earnings of $4.7 million during the quarter. In the second quarter, TMTG had a net loss of $16.37 million on revenues of $836,900, while in the first quarter of 2024, the company reported a loss of $327.6 million on revenue of $770,500. A significant portion of the first-quarter loss was attributed to expenses related to TMTG’s merger with the special purpose acquisition company (SPAC) Digital World Acquisition Corp.
Despite these financial struggles, TMTG remains optimistic about its future. In August, the company launched Truth+, a subscription-based video-streaming service that aims to offer family-friendly content, including live TV channels and on-demand programming. TMTG has indicated that it sees Truth+ as a key part of its strategy to drive long-term growth and increase shareholder value, positioning the platform as a broader part of its ecosystem beyond just the Truth Social network.
Looking ahead, TMTG’s ability to turn around its financial fortunes will depend on its ability to attract users and generate more revenue from its various offerings, including Truth Social and Truth+. However, the company faces significant competition from established platforms, and its financial stability will likely continue to be a concern for investors and analysts.
