Short interest in Trump Media & Technology Group (DJT.O) has risen sharply following the company’s recent merger announcement.
Financial data firm S3 Partners reported a 31% increase in short positions, reaching nearly 16 million shares.
This spike represents roughly $218 million in bets that the stock will decline, as the company’s shares rose 4% on Friday to $13.77.
Shares of the company have climbed over 30% since December 18, when it revealed a $6 billion merger with Google-backed TAE Technologies.
The stock initially jumped as much as 63% in the two days after the announcement.
Trump Media’s all-stock deal is a bold move tied to the expected growth of artificial intelligence data centers.
It complements the Trump family’s portfolio, which spans cryptocurrency, real estate, and mobile services.
Donald Trump owns about 115 million shares in Trump Media, roughly 40% of the company.
Following the merger, his stake in the combined entity would be approximately 20%.
Despite recent gains, Trump Media shares have dropped nearly 60% over the past 12 months.
Investors’ growing interest in shorting the stock reflects skepticism about sustaining its upward momentum.
The merger positions Trump Media to benefit from AI-driven energy opportunities while exposing it to potential volatility in the short term.
The market’s reaction illustrates the tension between ambitious corporate strategy and investor caution.
Short interest levels now approach highs not seen since October, signaling active betting on a pullback in stock value.
Trump Media continues to make headlines for its expansion across technology, media, and energy ventures.