- Short interest in Trump Media & Technology Group (DJT) has jumped about 31% since Dec. 18 to nearly 16 million shares, roughly $218 million in bearish bets.
- The rise in short exposure followed DJT’s announcement of a $6 billion all-stock merger with TAE Technologies, which helped drive the stock up more than 30% over the same period.
- Even after the rally, DJT remains down nearly 60% year over year, underscoring ongoing volatility and downside concerns.
- Trump Media has also flagged possible naked short selling and reporting issues, while elevated short interest leaves scope for sharp moves if sentiment shifts.
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In assessing DJT’s short interest and its recent market behavior, several themes emerge that are material for investors and risk managers.
Short Interest Surge Reflects Elevated Bearish Sentiment
The increase of ~31% in short interest—rising to ~16 million shares—indicates that a growing number of market participants believe DJT’s recent rally may be overextended. The $6 billion merger with TAE Technologies has clearly been a catalyst for the upside movement, but short sellers appear to be positioning for a retracement.
Merger as Double-Edged Sword
While the TAE Technologies deal boosts the company’s narrative exposure to nuclear fusion, AI infrastructure, and related energy sectors, it also possibly raises questions about valuation, execution risk, and regulatory exposure. The stock’s ~63% jump immediately after the merger announcement suggests optimism, but the sharp discount versus 12-month ago prices (down nearly 60%) reminds investors that past gains were not durable.
Float Composition and Short Squeeze Potential
Data from Benzinga indicates that as of December 2025, DJT had about 11.9 million shares shorted, representing ~7.38% of the publicly available float. With average daily trading volume of ~3.78 million shares, this suggests it would take just over three trading days (≈3.15 days) for short sellers to cover—moderately high squeeze potential depending on market flow and sentiment.
Regulatory and Structural Concerns
DJT has formally raised concerns about suspicious trading activity, particularly involving Qube Research & Technologies, which disclosed a nearly 6 million-share short position in Germany despite its U.K. base. Trump Media has questioned whether trading actually occurred and whether U.S. reporting rules are being circumvented, possibly hinting at naked short selling practices.
Broader Strategic Implications
From an investor perspective, this mix of hype (from the fusion-merger and corporate expansion into ETFs etc.), weakness (annualized price loss), and regulatory risk suggests a volatile future. Institutions may be cautious due to earnings shortfalls and unclear financials, retail interest may be volatile, and the high short interest opens the possibility of sharp reversals—both up or down—depending on news flow or regulatory decisions.
Open Questions
• Will the merger with TAE Technologies close as expected, at what timeline, and under what terms? What synergies and risks—especially regulatory—does it entail?
• How sustainable is the recent rally absent demonstrable revenue growth or profitability? Can DJT transition meaningfully from a social media entity into a broader holding company with multiple verticals?
• Will regulators act on DJT’s concerns around naked short selling, or require greater transparency around free float and borrow availability?
• To what extent will retail investor behavior amplify both upside and downside—could we see another short squeeze if negative catalysts are absent?
Supporting Notes
- Since its Dec 18, 2025 merger announcement with TAE Technologies, DJT shares have increased over 30%, with a peak jump of ~63% in the subsequent two days.
- Short interest has climbed ~31% post-merger announcement to nearly 16 million shares—its highest since October 2025.
- The value of short bets now stands at approximately $218 million, based on shares shorted and a recent price of roughly $13.77 per share.
- Year over year, DJT shares have lost almost 60% of value.
- Benzinga reports ~11.9 million shares shorted as of mid-December 2025, representing about 7.38% of the float, with 3.15 days to cover.
- In April 2025, hedge fund Qube Research disclosed a ~$105 million short position (~2.5% of free float) in DJT. Trump Media later alerted the SEC over concerns of naked short selling and reporting inconsistencies.