On Friday, shares of Trump Media, the organization overseeing Donald Trump’s social media outlet, Truth Social, experienced a significant increase after the former president announced he would not be selling his shares, easing weeks of market uncertainty.

Trump told reporters, “No, I’m not selling. I’m not leaving. I love it. I think it’s great.”

After his remarks, shares for Trump Media & Technology Group, the parent company of Truth Social, surged over 25% before retracting to lose more than half their profits. By the end of trading, the stock, listed as DJT on the Nasdaq, closed up 11.8% at $17.97.

Trading was halted twice due to the wild price movements following Trump’s statements. On Truth Social, he commented, “What right do they have to do this? If they do it again, we will move the stock to the New York Stock Exchange.”

As the largest shareholder of the company, Trump holds about 60% of the total stock, which translates to roughly 115 million shares worth over $2 billion. A six-month moratorium on selling has been in effect and will be lifted this Thursday.

Matthew Tuttle, CEO of Tuttle Capital Management, believes, “I don’t think he will sell as long as he remains in the election race. His ego won’t allow it. The DJT stock price mirrors the attendance at his rallies; he understands that selling would cause the stock to crash, which he wants to avoid.” However, Tuttle acknowledged, “if he loses, I think he will have to sell.”

YSL News previously noted that while selling shares might help Trump manage his increasing legal expenses, it could also flood the market and lower the stock price. Liquidating shares could send a negative message about the company and upset his supporters who have invested in the stock as a show of faith in him.

According to Jay Ritter, a finance professor at the University of Florida, “The speculation surrounding Trump potentially selling portions of his 114.75 million shares in Trump Media has been a dampening factor on the stock price. His statement today alleviated that worry, causing the stock to rise.” However, he cautioned that despite the temporary boost, the stock remains overvalued in the long run, and its downward trend would persist although at a slower pace due to Trump’s decision to hold onto his shares for now.

Even if Trump retains his shares, he might utilize them as collateral for loans. However, Ritter commented, a bank would likely offer a low loan-to-value ratio.

The stock price dropped more than 10% on Wednesday following the presidential debate between Trump and Vice President Kamala Harris, culminating further losses on Thursday, ending at $16.08, a record low.

Trump Media capitalizes on Trump’s popularity and is seen as having an inflated worth compared to other social media platforms by Wall Street’s traditional standards. Investors view this stock as a bet on Trump’s chances of returning to the presidency.

The sharp decline in Trump Media’s stock was aggravated after Harris took over from President Biden on the Democratic ticket. This drop has caused a loss of about $4 billion in Trump’s estimated wealth. Since reaching a peak in March after going public through a merger with Digital World Acquisition Group, shares have fallen approximately 73%.

Contributing: Reuters