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One of the major shareholders in President-elect Donald Trump's media company has divested nearly all of his stake, according to a regulatory filing.
Thursday night's disclosure to the U.S. Securities and Exchange Commission revealed that financial firm ARC Global Investments II and its manager Patrick Orlando no longer own more than 5% Trump media Share.
Orlando, the former CEO of the company that took Trump Media public in a special purpose merger, and ARC, the sponsor of that merger, currently hold only 30,147 DJT shares, or approximately 0.01% of the company's SEC common stock -Submission.
Trump Media reported in early September that ARC owned more than 11 million shares, representing 5.4% of the company's outstanding shares.
In mid-September, a Delaware judge found that Trump Media had violated an agreement with ARC and had to grant it additional shares. The judge ordered the parties to work to ensure ARC can sell or transfer its shares in a timely manner before a lock-up agreement expires on September 19.
As of Friday morning, ARC's reduced stake was worth about $850,000. ARC attorney Steven Fineman declined to comment on the sale.
Orlando and ARC said in the filing that the actions requiring them to report the change occurred on Sept. 30. The timing of any specific stock sale was unclear.
The move by ARC and Orlando was announced more than a month after another major shareholder, United Atlantic Ventures, sold virtually all of its DJT stake.
Trump Media, operator of the Truth Social app, suffered a major sell-off in late summer and was trading near its post-merger lows in late September. But October saw a major stock rally that recouped most of those losses.
This increase came in the run-up to the presidential election between Trump and Vice President Kamala Harris. Analysts say many of Trump Media's retail investors are fans of the Republican leader and are buying the company's shares to support him and bet on his political fate.
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Trump, whose controlling stake in Trump Media is worth more than $3 billion, has said he has no plans to sell his shares.
After Trump won another term in the White House, he used Truth Social to announce his picks for key Cabinet and other posts in his administration. He has also posted on social media site X, the Elon Musk-owned site, which attracts a significantly larger audience than Truth Social.
A spokesperson for Trump Media did not immediately respond to CNBC's request for comment on Thursday's SEC filings.
Orlando is reportedly facing lawsuits in Florida and Delaware from investors who accuse him and ARC of improperly stripping them of shares.
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