After its strong debut in late March, investors have soured on Trump Media & Technology Group after the company revealed millions of dollars in losses earlier this month and said it would struggle to meet its financial liabilities

Shares of Donald Trump’s media and technology firm dropped as much as 12% on Monday, extending a selloff that has now reduced the value of his stake in the operator of Truth Social to $2.9 billion.

After its strong debut in late March, investors have soured on Trump Media & Technology Group after the company revealed millions of dollars in losses earlier this month and said it would struggle to meet its financial liabilities.

The company’s stock closed down 8.4% at $37.17 on Monday, far from the record high of $79 it had notched during its debut on March 26. It is down around 40% so far in April.

The downturn is decreasing a potential windfall for Trump who could sell his shares to raise money for his 2024 presidential campaign and legal expenses, although lock-up restrictions for six months could prevent him from selling or borrowing against his shareholding.

Former U.S. President Trump – who owns nearly 78.75 million shares in the company – has seen a steep decline in the valuation of his stake from nearly $6 billion last month.

The market value of whole of Trump Media & Technology Group is now below that figure, at around $5.55 billion.

But the declines are welcome news for short-sellers who have suffered hefty losses on the stock so far this year.

Trump Media & Technology Group has a short interest of nearly 4.75 million shares, or 12% of its free float, per analytics firm S3 Partners.

Monday’s drop meant those betting against the stock made around $16 million in market-to-market profits, though those shorting the stock are still 69% lower for the year.

DJT’s recent price weakness has offset the huge financing costs short sellers are incurring and keeping many of them in the trade, said Ihor Dusaniwsky, MD of predictive analytics at S3 Partners.