Shares in Donald Trump’s social media company slumped 15 per cent on Monday, as the former US president’s hush-money criminal trial began in New York.
In a regulatory filing, Trump Media & Technology Group said that it could sell millions of additional shares in coming months.
The company’s move marked a step towards letting insiders - including Trump - sell their holdings.
Trump Media has already been hit by a wave of selling since its formal stock exchange debut in March, retreating sharply from the opening price of $70.90.
As Trump sat quiet and motionless in a Manhattan courtroom, shares in the firm which runs the social media platform Truth Social slid more than 62 per cent to less than $27 apiece.
As a result, its market capitalisation has been slashed by nearly $6billion, leaving it at around $3.7bn as of Monday.
The likely 2024 Republican nominee is facing 34 felony counts of falsifying business records related to hush-money payments to the adult film star Stormy Daniels.
It is the first criminal trial of an American president in proceedings expected to last around six weeks.
Trump, running for re-election while under significant financial pressure after a series of legal woes, is currently barred from selling his shares until around September.
In the filing, Trump Media said a potential 146.1 million shares could be sold, including 114.8m owned by Trump.
It also notified investors of plans to issue roughly 21.5m additional shares in connection with warrants, which give the owner the right to shares at a certain price.
Trump Media said it expected to raise about $247m via such sales, which are common after a public listing like thiers.
In recent weeks, the ex-president has sought to raise confidence in the company, noting that Truth Social was “the primary way I get the word out and, for better or worse, people want to hear what I have to say”.
He urged followers on the platform over the weekend: “If people who believe in putting America First and want to Make America Great Again, support TRUTH, we will be your Voice like never before.
“Think of this as a Movement, the Greatest Movement in the History of our Country.”
Earlier this month, several Democratic-aligned groups called on Congress to investigate Trump Media amid allegations of money-laundering and insider trading aimed at backers.
