A decision Donald Trump made in March is proving to be a costly one that has now caused the former president to slip out of Forbes' rankings for the top 500 richest people, according to a new report.
The debut of Trump's social media company, Truth Social, was a major win for Trump, who found himself much richer as a result. But a "lockup" agreement made sure he wouldn't cash in his shares instantly, and the wait is now costing him, according to the Washington Post on Saturday.
The Post reported over the weekend that the ex-president's "shares in the parent company of his social media platform Truth Social have plunged in value in the weeks before he can sell them, a losing streak that has at least temporarily erased billions of dollars from his paper net worth."
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Despite being the largest shareholder in the public company, Trump "has been unable to sell his 114 million shares because of a standard lockup agreement that began when Trump’s company first went public through a merger in March and does not end until later this month," according to the Washington Post.
Since the company first came on the public scene, it has seen drastic falls in price, with analysts suggesting its value depends heavily on Trump's probability of taking back the White House in the election.
Now, according to the Post, Trump is seeing huge decreases in his own personal wealth as a result of the company's falling price.
"Newly public companies often implement lockup agreements to show investors that their top executives and financiers are committed and won’t race to cash out," the outlet reported Saturday. "But Trump’s lockup has proven unusually costly, at least on paper, given the size of his stake and the extent of the drop. Trump Media’s market debut in March propelled Trump into the rankings of the world’s 500 richest people. By Tuesday, according to Forbes, he had slipped to no. 851."
