In a staggering downturn, Trump Media, the company majority-owned by former President Donald Trump, saw its stock price fall below $20 per share for the first time since its public debut. The plummeting value raises concerns over the future of the company and the potential actions of its primary stakeholder.

The stock price of DJT, Trump Media's flagship stock, touched a new low of $19.38 per share, marking a significant drop of more than 75% from its peak on March 26 when the company went public on the Nasdaq stock exchange. At the end of Wednesday's trading session, the stock closed at $20.10 per share, down over 4%.

Amid this downward spiral, the worth of Trump's stake in DJT remains substantial, valued at more than $2.2 billion, representing more than half of his net worth on paper, according to Forbes. However, a lock-up agreement preventing Trump from selling his shares is set to expire soon, raising speculation on whether he will take advantage of this opportunity.

Trump Media's decline has continued even after witnessing a surge in July, triggered by an assassination attempt on Trump's life during a campaign rally in Pennsylvania. Since then, the company has lost more than half of its value, eliciting concerns about its financial stability.

Trump Media has been plagued by recent earnings reports indicating financial losses and limited revenue generation. With the lock-up agreement expiration approaching, investors are apprehensive about the future of the company. If Trump decided to sell his shares, its impact on investor confidence could be significant, as acknowledged in the company's regulatory filings.

Investing in Trump Media has become increasingly seen as a way for Trump's supporters to show their allegiance and bet on his political prospects, especially against Democratic Vice President Kamala Harris. The company's fledgling social media platform, Truth Social, heavily relies on Trump's popularity and reputation. Thus, any potential decline in Trump's involvement could have repercussions for the platform's success.

Alongside the declining stock, Trump's political and legal circumstances have also played a role. With President Joe Biden withdrawing his reelection bid and endorsing Harris as his successor, Trump's odds of winning the election appear to have diminished. This shift in political dynamics could further impact Trump Media's future growth and profitability.

Moreover, Trump Media recently announced a partnership with investment firm Yorkville Advisors, potentially enabling the company to issue up to $2.5 billion in stock to Yorkville. While this move aims to secure additional capital for strategic opportunities, it also raises concerns of dilution for existing shareholders and the potential effect on the stock price.

As the stock price of Trump Media continues to plummet, investors and industry experts are closely watching to see if Trump will sell his shares once the lock-up agreement expires. The future of Trump Media, alongside its social media platform Truth Social, hangs in the balance as the company navigates through financial challenges and shifting political climates.