Shares of Trump Media & Technology Group Corp. (DJT) experienced a decline following the company’s filing with the U.S. Securities and Exchange Commission (SEC) to permit the sale of approximately $2.3 billion in stock by the Donald J. Trump Revocable Trust. This trust holds a 52.2% stake in the company, equating to about 115 million shares.

The filing allows for periodic stock sales but does not mandate that they occur. Despite this, the market reacted negatively, with DJT shares dropping 6.4% on Wednesday, closing at $18.93.

The potential for insider selling has raised concerns among investors about the company’s future stock performance. Notably, other major stakeholders, including United Atlantic Ventures and Patrick Orlando’s ARC Global Investments II, collectively owning around 11% of Trump Media, may also be in a position to sell their shares.

While former President Donald Trump has previously indicated he has no immediate plans to sell his shares, the SEC filing provides the flexibility for such transactions in the future. The market’s response underscores the sensitivity of DJT’s stock to potential insider sales and the broader implications for shareholder confidence.