United Atlantic Ventures (UAV), a significant early investor in Trump Media & Technology Group, has sold nearly 11 million shares in the company, reducing its stake to just 100 shares. According to a Securities and Exchange Commission (SEC) filing, the sale took place following the expiration of a lock-up period on September 19, which had previously restricted insiders from selling their stock.
UAV, an investment firm co-founded by former “Apprentice” contestants Andrew Litinsky and Wes Moss, had held a 5.4% stake in Trump Media before the sale. Although the exact amount UAV received for its shares has not been disclosed, trading volume and price data suggest the sale may have generated between $128 million and $170 million. The stock, trading under the ticker DJT, closed at $13.98 per share on Thursday, down 1%.
Image: Trump Media & Technology Group Corp | Google Finance
UAV Sells After Legal Victory
UAV’s stock sale comes just weeks after a federal judge in Delaware ruled in its favor in a lawsuit against Odyssey Transfer and Trust Company, which had been handling Trump Media’s stock transfers. The ruling allowed UAV to proceed with its share sale, clearing the way for the firm to sell off its holdings once the lock-up period expired.
Despite their early role in co-founding Trump Media with former President Donald Trump, Litinsky and Moss had fallen out with the company and been embroiled in legal battles regarding their shares. Trump, who still owns 114.7 million shares or 56% of the company, has stated that he has no intention of selling his stake.
Declining Stock Value and Performance Concerns
UAV’s sale highlights the challenges facing Trump Media. The company’s stock price has dropped more than 80% from its post-merger peak. DJT stock, which once traded as high as $79.38 per share after its Nasdaq debut, has seen a significant downward slide, reducing the company’s market capitalization to below $2.8 billion. Analysts have characterized DJT as a “meme stock,” with price fluctuations driven more by investor sentiment around Trump than by the company’s underlying business performance.
Trump Media, which operates the Truth Social platform, has struggled with financial performance, reporting net losses of $344 million on less than $2 million in revenue over the past two quarters. Despite these financial challenges, UAV’s share sale marks the first major insider sell-off following the lock-up period, as other significant shareholders, such as ARC Global Investments II LLC, continue to hold their positions.
Outlook Amid Stock Volatility
With UAV’s exit and ongoing financial struggles, the future of Trump Media remains uncertain. As of now, ARC Global Investments II LLC is the only other shareholder with more than 5% of the company, holding over 11 million shares. The company’s ability to stabilize and recover investor confidence will depend on its capacity to improve its business fundamentals and generate meaningful revenue, rather than relying on market enthusiasm tied to its association with Trump.
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