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One of the largest shareholders in President-elect Donald Trump’s media company has given up nearly all of his stake. Regulatory filing showed.
A disclosure to the U.S. Securities and Exchange Commission on Thursday night revealed that financial firm ARC Global Investments II and its manager Patrick Orlando no longer own more than 5% of the stock. trump media stock.
Orlando, the former CEO of the company that took Trump Media public in a special purpose acquisition company merger, and his merger sponsor, ARC, now own just 30,147 shares of DJT stock, the paper said. , meaning it only owns about 0.01% of the company’s common stock. Filings with the SEC.
Trump media reported In early September, it was announced that ARC held more than 11 million shares, representing 5.4% of the company’s outstanding shares.
In mid-September, a Delaware judge ruled that Trump Media had violated its agreement with ARC and must be awarded additional shares. The judge ordered the parties to work to ensure that ARC can sell or transfer its shares in time for the expiration of the lock-up agreement on September 19th.
As of Friday morning, ARC’s reduced stock was worth about $850,000. ARC’s attorney, Stephen Fineman, declined to comment on the sale.
Orlando and ARC said in their filings that the action requiring reporting of changes took effect on Sept. 30. The exact timing of the stock sale is unknown.
The move by ARC and Orlando comes more than a month after another major shareholder, United Atlantic Ventures, sold virtually all of its shares in DJT.
Trump Media, which operates the Truth Social app, suffered a steep decline in the late summer and was trading near its post-merger lows by the end of September. However, the stock price rose significantly in October, reversing most of the losses.
The surge came just before the presidential election between Trump and Vice President Kamala Harris. Analysts say many of Trump Media’s individual investors are fans of the Republican leader, buying the company’s stock as a way to support him and stake his political fortunes.
Trump Media’s majority stake is worth more than $3 billion, but President Trump has said he has no plans to sell the stake.
After winning another term in the White House, Trump used Truth Social to announce his picks for key cabinet positions and other positions in his administration. He also posts on the Elon Musk-owned social media site X, which has a much larger audience than Truth Social.
A Trump Media spokesperson did not immediately respond to CNBC’s request for comment on Thursday’s SEC filing.
Orlando reportedly facing lawsuit florida and Delaware from investors who accuse him and ARC of unfairly stripping them of their shares.
