Shares of Trump Media closed down by 6.6% on Tuesday, marking a dip just 48 hours before the expiration of lockup restrictions on majority shareholder Donald Trump and other insiders' ability to sell their stakes in the company. The former president announced last week that he has no intention of selling his significant stake in the Truth Social owner, which as of Tuesday's close, was valued at over $1.8 billion.

The stock's decline comes as the lockup agreement, which has prevented Trump and early investors from selling their shares, is set to expire on Thursday. Since the company's merger with a special purpose acquisition company in March, Trump and other insiders have been prohibited from selling their shares. However, Trump's recent announcement reaffirmed his commitment to holding onto his 114,750,000 shares.

Last week, following Trump's statement, shares experienced a surge of as much as 25%, closing up 11% on Friday. However, these gains were quickly erased by Trump Media's losses over the course of this week. On Monday, the stock closed down nearly 4% amid news of a breach of agreement with investor ARC Global.

In a ruling on Monday, a Delaware judge sided with ARC Global, stating that Trump Media had breached their agreement. This ruling stems from an underestimated allocation of stock that ARC Global was entitled to following the company's merger and subsequent public trading. The breach of agreement further contributed to the decline in Trump Media's stock value.

Tuesday's decline deepened, with the stock closing at $16.14 per share, inching closer to its lowest closing level since its debut on the Nasdaq exchange. The stock is now down 60% from its most recent high in July, which followed the first assassination attempt on Trump at a rally in Pennsylvania. Additionally, it is down 75% from its post-merger high in March.

The recent threat to Trump's life over the weekend, where a man armed with a semi-automatic rifle was apprehended by the U.S. Secret Service near Trump's Florida golf club, did not have the same positive impact on the stock as the first assassination attempt in July. Following the July incident, Trump Media shares spiked by more than 30%.

As of Tuesday's close, Trump Media's market capitalization stands at $3.2 billion, reflecting the company's diminished stock value. The expiration of lockup restrictions on Thursday will provide an opportunity for insiders, including Trump, to potentially sell their stakes, which may have further implications for the company's stock performance in the coming days.