The U.S. Securities and Exchange Commission (SEC) disclosed that ARC Global Investments II LLC, a main shareholder of Trump Media & Technology Group (DJT, Financial), has sold nearly all its shares in the company. ARC, along with its manager Patrick Orlando, now holds about 0.01% of shares, a sharp decline from over 5% in September, which amounted to more than 11 million shares. Orlando, previously CEO of Digital World Acquisition, facilitated Trump Media's public listing but was removed before the completion of the transaction earlier this year.
In September, a Delaware judge ruled that Trump Media breached an agreement with Orlando's ARC Global, which required them to obtain over 500,000 additional shares before an insider trading lock-up period expired. After this lock-up period ended on September 19, DJT's stock plummeted to its lowest point since listing, driven by investor expectations of Trump divesting shares. However, Trump did not sell, and DJT sought an injunction to block ARC Global from immediate sales. A Florida judge declined the injunction, allowing ARC Global to sell or transfer shares post lock-up period.
By November 15, ARC Global's DJT shares were valued at just $850,000, a sharp contrast to the estimated $330 million valuation for a 5.4% stake. Interestingly, ARC Global's sale coincided with a significant rise in DJT shares. From October onwards, DJT's stock surged from $15 to a peak of $54 amid heightened interest in "Trump trades."
As of market close on November 15, Trump Media & Technology Group's stock (DJT, Financial) was priced at $28.1, marking a 4.11% increase, with a market cap of $6.096 billion.
