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One of the top shareholders in President-elect Donald Trump’s media company has sold off nearly all of his stake, regulatory filings show.
Financial firm ARC Global Investments II and its manager Patrick Orlando no longer own more than 5% of the stock, according to a disclosure to the U.S. Securities and Exchange Commission on Thursday night. trump media inventory.
Orlando, the former CEO of the company that took Trump Media public through a SPAC merger, and ARC, the merger’s sponsor, currently own only 30,147 shares of DJT stock, according to SEC filings. This corresponds to approximately 0.01% of the company’s common stock.
Trump Media reported in early September that ARC owns more than 11 million shares, or 5.4% of the company’s outstanding shares.
In mid-September, a Delaware judge ruled that Trump Media had breached its contract with ARC and should be granted additional equity. The judge ordered the parties to try to get ARC to sell or transfer the shares in time for the expiration of the protection agreement on September 19.
As of Friday morning, ARC’s reduced stake was worth about $850,000. ARC attorney Steven Fineman declined to comment on the sale.
Orlando and ARC stated in the filing that the action requiring them to report changes took place on Sept. 30. The timing of specific stock sales was unclear.
This move by ARC and Orlando was revealed just over a month after another major shareholder, United Atlantic Ventures, sold virtually its entire stake in DJT.
Trump Media, which operates the Truth Social app, saw a major sell-off in late summer and was trading near its post-merger lows in late September. However, a large stock rally occurred in October, recouping most of the losses.
The surge comes ahead of the presidential election between Trump and Vice President Kamala Harris. Analysts say many of Trump Media’s retail investors are fans of the Republican leader and are buying the company’s stock as a way to support him and bet on his political fortunes.
Trump, whose majority stake in Trump Media is worth more than $3 billion, has said he has no plans to sell his stock.
After winning another White House term, Trump used Truth Social to announce his picks for key Cabinet positions and other positions in the administration. He also posted on X, a site owned by Elon Musk that has a much larger audience than Truth Social.
A Trump media spokesperson did not immediately respond to CNBC’s request for comment on the SEC filing Thursday.
Orlando is reportedly facing lawsuits in Florida and Delaware from investors who accuse him and ARC of unfairly stripping them of their stock.
