(Reuters) – One of the largest shareholders in former U.S. President Donald Trump’s media company has virtually eliminated his 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 TV show “The Apprentice,” has reduced its 5.5% stake in Trump Media & Technology from more than 7.5 million shares to just 100 shares, according to a filing. late on Thursday.
United Atlantic was one of the company’s three largest shareholders. Republican presidential candidate Trump owns approximately 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 insider trading restrictions tied 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, lifted by retail traders who saw it as a speculative bet on Trump’s chances of a second four-year term as president.
Since then, shares of Trump Media have steadily lost ground, with the 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 September 13 that he had no plans to sell his shares, shifting focus to other major stakeholders who could make money from it.
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 revenues are about equal to two Starbucks (NASDAQ:) coffee shops. (This story has been corrected to correct hyperlinks, in paragraphs 7, 8)
