Trump Media & Technology Group Faces $106 Million Short Bet From Hedge Fund As Shares Plunge To 6-Month Low

Qube Research & Technologies Limited, a London-based hedge fund, has disclosed a substantial short position against Trump Media & Technology Group Corp. DJT, the company behind Truth Social, according to Germany’s Federal Gazette.

What Happened: The position represents 2.53% of DJT’s outstanding shares, valued at approximately $106.26 million based on the company’s $4.3 billion market capitalization.

DJT shares recently tumbled to a six-month low after the company registered for the potential sale of shares owned by President Donald Trump, who controls 53% of the business, and other shareholders.

The stock has declined 41.33% year-to-date and trades more than 80% below its peak price following its March 2024 public debut via a Special Purpose Acquisition Company merger with Digital World Acquisition Corp.

Total short interest in DJT stood at 10.17% as of recent data from Benzinga.

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Why It Matters: Despite the bearish position, DJT has been expanding its business model beyond social media. The company recently announced a partnership with Yorkville America Equities and Index Technologies Group to launch Truth Social-branded Separately Managed Accounts focused on “American values” across four themes: Faith & Values, Liberty & Security, Energy Independence, and Made in America.

CEO Devin Nunes described the initiative as offering “non-woke investment options.” The company also plans to introduce exchange-traded funds later this year in partnership with Crypto.com, backed by TMTG’s $250 million cash reserves held by Charles Schwab.

Price Action: DJT closed at $19.96, up 5.44% on Tuesday, but dipped 1.50% in after-hours trading to $19.66.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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