A major stakeholder in Trump Media & Technology Group (DJT, Financial) has almost entirely divested its holdings in the company, as revealed by a recent regulatory filing. The stakeholder, ARC Global Investments II, managed by Patrick Orlando, sold its shares before a significant price uptick following Trump's electoral victory, missing out on substantial gains.
The U.S. Securities and Exchange Commission (SEC) disclosed that ARC Global Investments II's holdings in Trump Media fell below 5% by the end of the third quarter. Previously, ARC Global reportedly owned over 11 million shares, representing 5.4% of the company’s total issued shares.
Despite market expectations of Trump selling his shares after a restrictive period ended on September 19, he did not divest. DJT even sought an injunction to prevent ARC Global from selling its shares immediately, but a Florida judge ruled against issuing the injunction, ensuring ARC Global could proceed with its transactions post-lockup period.
By the end of the trading week, the value of ARC Global’s holdings in DJT had diminished significantly to $850,000. In contrast, their 5.4% stake was previously valued at approximately $330 million. ARC Global's decision to sell occurred right before DJT's stock surged from around $15 to a high of $54 due to heightened interest in "Trump trades" in October.
Market analysts suggest that the sell-off by ARC Global signifies their skepticism about Trump's chances of winning the U.S. election, despite ongoing investor enthusiasm backing him through DJT shares. A month prior, another significant shareholder, United Atlantic Investment, also liquidated nearly all its DJT shares.
Following Trump's sweeping victories across key states, he reiterated his commitment to retaining his shares and called for regulators to investigate the parties responsible for spreading rumors about potential sell-offs.
