This is not investment advice. The author has no position in any of the stocks mentioned. Wccftech.com has a disclosure and ethics policy.
In a development that substantially reduces President-elect Trump's inclination to reduce his huge stake in Trump Media and Technology Group (DJT), allaying the fears of the stock's bulls at least through the upcoming presidential term, the president-elect has chosen to transfer his ownership interest in the company to a trust, with Donald Trump Jr now acting as the sole trustee.
For the benefit of those who might not be aware, the President-elect retained a mammoth 59 percent stake in Trump Media and Technology Group (TMTG), which corresponded to 114.75 million shares.
As per a new filing with the SEC, TMTG has disclosed:
"The reporting person transferred 114,750,000 shares of common stock of Trump Media & Technology Group Corp. on December 17, 2024 as a bona fide gift to Donald J. Trump Revocable Trust Dated April 7, 2014 (the "Trust") for no consideration. Following the transaction, the reporting person directly owned 0 shares of Trump Media & Technology Group Corp. and indirectly owned 114,750,000 shares of Trump Media & Technology Group Corp."
In a separate filing, the company has disclosed that Don Jr will now act as a trustee for the shares held by the Donald J. Trump Revocable Trust.
Soon after winning the presidential election in November, the President-elect termed all rumors regarding his supposed intention to reduce his stake in Trump Media and Technology Group "fake, untrue, and probably Illegal." Today's filing appears to be him following through on his committment.
So, why is President-elect Trump's continuing commitment to Trump Media and Technology Group a critical factor for the stock's bulls? Well, the company benefits through its close association with him.
After all, the firm is yet to generate revenue. For instance, during the third quarter of 2024, TMTG disclosed $1 million in revenue and $4.7 million in interest income. The company also recorded a net loss of $19.2 million for the quarter after accounting for $12.1 million in legal costs, including those in relation to TMTG's acquisition of TV streaming technology in August 2024.
However, over the same period, TMTG ended the quarter with in $372 million in cash for a 14,368% annual growth as per the unaudited balance sheet filed with the SEC. TMTG shared in its third quarter release "it is well-positioned to further develop and expand its new TV streaming platform, Truth+" courtesy of the sizable cash resources.
Media coverage has repeatedly stressed the need for TMTG to generate more revenue. For instance, the Washington Post recently noted that Trump Media and Technology Group, over the first nine months of the year, had earned just $2.6 million in revenue and burned $363 million in cash.
Editor's Note: Expanded coverage, added details in paragraph eight, and adjusted overall tone at 8:28:11 am ET December 20th, 2024
About the author: Writing is my one incontrovertible passion. Over the past six years, he has authored over 2,200 distinct articles on financial and tech-related topics, spanning nearly 1 million words. And he has been a member of Wcctech mobile team since 2025. As an alumnus of the University of Toronto, Rotman Commerce Program, I bring nuance, in-depth knowledge, and a unique perspective to every topic that I cover. When I'm not writing, I'm traveling the world, exploring hidden confectionaries and restaurants as an aspiring food connoisseur.
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