Shares of Trump Media (DJT) fell 5.31% during pre-market trading on Friday.
The slump comes as US President-elect Donald Trump transferred his entire ownership stake in the company to a revocable trust.
Details of the DJT share transfer
The transaction involved 114,750,000 DJT shares, representing approximately 53% of the company’s ownership.
According to Securities and Exchange Commission filings, the transfer was finalised on Tuesday, with Trump named as the sole beneficiary of the trust.
The shares were transferred to the Donald J. Trump Revocable Trust without any financial compensation, the regulatory filing added.
President-elect Donald Trump’s son, Donald Trump Jr., has been named the sole trustee of a trust with sole voting and investment authority over securities held by the entity.
Shares of Trump Media (DJT) closed at $35.41 on Thursday, valuing the transferred shares at over $4 billion.
Trump has not served in an executive role at Trump Media, which went public earlier this year following its merger with the publicly traded Digital World Acquisition Corp.
The Trump Media stock has climbed around 17% in the past 30 days.
Donald Trump’s previous term
Trump is set to be sworn in as president for a second non-consecutive term on January 20.
The transfer of shares by Trump follows a pattern seen in his previous financial maneuvers.
Ahead of his 2017 inauguration, Trump made similar transfers to the same revocable trust, including various real estate holdings, assets, and liabilities, as outlined in reports by his then-accounting firm, Mazars.
He also transferred assets to the trust in February 2016 during his presidential campaign.
Trump Media DJT’s diversification efforts
Last month, reports added that the social media company was reportedly in advanced discussions to acquire Bakkt, a cryptocurrency trading platform owned by Intercontinental Exchange, as part of its efforts to diversify beyond social media.
The valuation being negotiated has not been disclosed.
Broader market sentiments remain down
US stock futures slid on Friday as markets prepared for the “Triple Witching” hour, with around $6.6 trillion in options set to expire for the quarter.
At the time of writing, Dow futures were down 284 points, or 0.66%, and S&P 500 futures had dropped 67.25 points, or 1.17%.
The Nasdaq 100 e-minis saw the largest decline, falling 269 points, or 1.7%.
Electric vehicle giant Tesla shares were also down around 5% in pre-market trading.
The company earlier today recalled close to 700,000 vehicles due to tire pressure monitoring system issue.
Chip giant Nvidia’s shares were down close to 3%.
Investor was further dampened by concerns over a potential US government shutdown.
Late Wednesday, a group of Republican lawmakers opposed President-elect Donald Trump’s spending bill, leaving Congress without a resolution as the government funding deadline loomed at midnight.
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