Trump Media Accuses UK Firm of Secret $100M Short Bet on DJT Stock

Trump Media & Technology Group has called on U.S. regulators to investigate what it describes as potentially harmful trading behavior involving its DJT stock. The company claims that UK-based Qube Research & Technologies is shorting DJT shares worth over $100 million without adequately disclosing the position to U.S. authorities.

According to Trump Media, Qube declared a short position of six million DJT shares to regulators in Germany. The company asserts that U.S. markets and other major markets receive less transparent disclosure than Qube has revealed in Germany. The lack of disclosure raises questions about how well regulations are being followed and the honesty of present-day market dealings.

The company believes Qube’s short position has nearly doubled to around 11 million shares. According to Trump Media, the growing shares owned by Qube Research are leading to severe market pressure, which caused stocks to decline by more than 35 percent in 2022. The business believes undisclosed information could create market distortion and potential investor deception.

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Company Points to Larger Transparency and Fairness Issues

In a public letter to the SEC’s acting chairman, Trump Media stated that this undisclosed trading could have broader implications. It urged the agency to examine whether market participants like Qube follow all regulatory requirements for reporting short positions. The company suggests that this alleged activity may influence the sharp decline in its stock price.

The complaint submitted by Trump Media emerged during a critical period when the company faced close inspection by investors and regulatory bodies. Since its last fiscal year, Trump Media has generated $4 million in revenue and incurred more than $400 million in losses. The company has faced ongoing problems in achieving profitability since its recent public stock market entry.

Trump Media continues expanding into the digital asset market alongside its existing business operations. The firm secured support from DWF Labs and Crypto.com for its upcoming ETF partnership. World Liberty Financial received $25 million from investors who backed the decentralized finance platform that uses the Trump brand.

Conclusion

While Trump Media’s accusations against Qube have sparked calls for regulatory action, the company faces significant business and financial headwinds. The SEC has yet to issue an official response regarding a possible investigation.

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