Shares of Trump Media and Technology Group Shares fell greater than 13% on Tuesday, continuing a slide following the conviction of former President Donald Trump, the corporate's majority shareholder.
Shares of Trump Media, which trade under the ticker symbol “DJT,” have fallen about 40 percent since May 30, when a New York jury found Trump guilty of 34 counts of falsifying business records.
Tuesday's sell-off coincides with a June 18 deadline during which a number of the company's investors could exercise warrants.
In a submission In an announcement to the U.S. Securities and Exchange Commission on April 15, Trump Media announced its plans to issue nearly 21.5 million shares of common stock, to be issued “upon the exercise of warrants.”
Trump Media's registration statement has not yet been declared effective by the SEC. Until that happens, the shares the corporate plans to register can’t be sold. However, the registration statement states that holders of Trump Media warrants will have the option to exercise them “cashlessly” starting Tuesday and until the registration statement becomes effective.
On Tuesday, the corporate also amended its registration statement to warn investors that there was little it could do to stop former President Donald Trump from using social media platforms apart from the corporate's own Truth Social network.
“If TMTG disagrees with President Donald J. Trump about the scope of its obligation to use or first post on Truth Social, TMTG lacks any meaningful remedy with respect to that disagreement,” the modified lines say.
Such a scenario, the corporate warns, “could have a material adverse effect on TMTG’s business and/or operations.”
The warning comes just weeks after the previous president – who uses Truth Social almost exclusively for his public statements – joined the social media app TikTok.
Truth Social, meanwhile, is struggling to retain its small user base. According to digital intelligence platform Similarweb, the social media site's average variety of monthly visits from May 2023 to April 2024 was 39% lower than the previous 12-month period.
Trump Media shares also suffered a setback last week, falling greater than 5% on June 10 as the corporate released its newly audited financial statements after its last auditor was accused of fraud.
Trump Media & Technology Group reported a net lack of $327.6 million and total revenue of $770,500 in the primary quarter of the 12 months in its most up-to-date earnings report in May.
The company had a market cap of roughly $5.4 billion at 2:30 p.m. ET.
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