(Reuters) – One of the largest shareholders in former U.S. President Donald Trump’s media company has all but eliminated its stake following the recent end of sales restrictions.
United Atlantic Ventures, managed by Trump Media co-founder Andrew Litinsky, who had appeared on Trump’s hit reality show “The Apprentice,” cut its 5.5% stake in Trump Media & Technology from more than $7.5 million. of shares to just 100 shares, according to a document. late on Thursday.
United Atlantic had been one of the company’s three largest shareholders. Republican presidential candidate Trump owns about 57% of Trump Media.
Shares of Trump Media, which operates the Truth Social app, have been volatile over the past five trading sessions following the end of restrictions on insider trading related to the company’s stock market debut in March.
The company’s shares fell about 1% on Thursday ahead of the filing, leaving it with a stock market value of $2.8 billion.
Trump Media’s value soared to nearly $10 billion after its Wall Street debut, boosted by retail traders who saw it as a speculative bet on Trump’s chances of securing a second four-year term as president.
Since then, Trump Media shares have steadily lost ground, with the stock’s declines accelerating after President Joe Biden ended his re-election bid on July 21.
Trump, whose stake in Trump Media is worth about $1.6 billion, said on Sept. 13 that he did not plan to sell his shares, focusing attention on other major stakeholders who could cash out.
A representative for Litinsky did not immediately respond to a request for comment on the stock reduction.
Trump Media has been burning money and its revenue is roughly equivalent to that of two Starbucks coffee shops. (This story has been corrected to correct hyperlinks, in paragraphs 7, 8)