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ARC Global Investmentsa major investor in Trump Media and Technology Group (NASDAQ:DJT), significantly reduced its stake in the company.
What happened: According to a regulatory filing on Friday, ARC Global and its manager, Patrick Orlandonow holds only 0.01% of the capital of Trump Media, the parent company of Social truth.
This is a significant decrease from their previous holding of more than 5%, or more than 11 million shares, in September.
Orlando, the former CEO of Digital World Acquisition Corp.the SPAC that took Trump Media public, was removed from his role before the transaction is concluded.
See also: Over the past five years, the price of gold has increased by approximately 83%. Investors like Bill O’Reilly and Rudy Giuliani use this platform to create custom gold IRAs to help protect their savings from inflation and economic turmoil.
In July, the United States Securities and Exchange Commission (SEC) sued Orlando, alleging securities fraud for false and misleading statements as CEO of Digital World Acquisition.
In September, a Delaware judge ruled that Trump Media violated an agreement with ARC Global. The decision states that the fund should receive more than half a million additional shares before a lock-up period on insider sales expires.
Why it matters: President-elect Donald Trump currently holds a 57% stake in Trump Media.
On Election Day, Trump Media reported a 6% year-over-year decline in its third quarter revenuewhich amounted to $1.01 million, with all revenue coming from advertising on the Truth Social platform.
Earlier this month, Trump announced that he had no plans to sell its stake in parent company Truth Socialcausing the company’s stock to skyrocket.
Meanwhile, on Wednesday it was reported that CFO of Trump Media and two other insiders sold millions of dollars worth of stock after the election.
Price action: DJT stock ended Friday up 4.11%, closing at $28.10. However, after hours, the stock fell 0.57% to $27.94 at the time of writing, according to data from Benzinga Pro.
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