Introduction

In a startling turn of events, Trump Media and Technology Group (TMTG) has revealed that co-founders Andrew Litinsky and Wesley Moss have liquidated most of their stake in the company, selling off nearly 7.53 million shares valued at approximately $100 million, according to a regulatory disclosure released Thursday.

Share Ownership Details

As of the last filing, the investment vehicle United Atlantic Ventures LLC, controlled by Litinsky and Moss, reported ownership of just 100 shares. This significant offloading has raised eyebrows, as neither of the co-founders holds an official position within TMTG. They are classified as passive investors, meaning their recent sell-off should not be interpreted as an insider signal of impending issues within the company.

Background of the Partners

The partnership between Litinsky, Moss, and Trump dates back to the reality television show “The Apprentice,” where they first crossed paths. After Trump's Twitter ban in the wake of the January 6 Capitol riots, Litinsky and Moss played an instrumental role in persuading him to launch his own social media platform, offering him a majority stake in the venture.

Initial Investment and Legal Battles

Initially, when Trump Media went public in March under the ticker symbol representing Trump’s initials, United Atlantic Ventures secured a 5.5% share of the company. However, relations soured soon after, leading to legal battles between the investors and TMTG. Litinsky and Moss sued the company, asserting they were unfairly treated, while TMTG retaliated, claiming shortcomings in their management of the Truth Social platform.

Shareholder Dilution and Stock Sales

By mid-August, United Atlantic Ventures’ share held had plummeted to below 3.8%, coinciding with dilution issues affecting their ownership. The regulatory filing did not specify the timing of their stock sales, raising questions about whether it was a one-off transaction or spread over several trading days. The firm was under a lock-up period restricting sales until September 19, with estimated share prices lingering between $12 to $15 each.

Market Reaction

Although the exit of major investors typically instills concern among market players, recent events surrounding Litinsky and Moss had already primed investors for uncertainty due to ongoing litigation. Recently, a court ruling favoring UAV required that their 7.53 million shares be released from escrow, reinforcing the volatility attached to their investments.

Impact on TMTG

With Litinsky and Moss now out of the picture, some fears surrounding TMTG might subside. Nevertheless, the spotlight shifts back to former President Donald Trump, who possesses nearly 115 million shares in TMTG, accounting for approximately 57% of the company. Investors remain anxious as concerns swirl about potential stock sales from Trump himself, especially given his rising legal fees.

Speculations on Trump’s Holdings

Despite attempts to reassure the market that he has no plans to sell, TMTG shares plummeted to an all-time low this past Tuesday. Speculation continues to propagate, hinting that Trump may need to liquidate part of his holdings for cash.

Trump’s Diversification Efforts

Interestingly, Trump has diversified his earnings through a line of branded merchandise, introducing an array of products from sneakers to luxury diamond-encrusted wristwatches priced at up to $100,000. While TMTG remains in a precarious position, the fallout from the recent stock dump adds another layer of complexity to an already tumultuous landscape surrounding the company.

Conclusion

Stay tuned as this story develops—who knows what might be in store for Trump Media in the coming days and amidst Trump's captivating product launches!