Stock bears are turning up the heat on Trump Media as short sellers crowd into the trade after a sharp rally tied to a merger announcement, according to data from S3 Partners.
The surge in bearish bets shows traders are bracing for losses after a fast jump in the stock that followed a $6 billion deal tied to energy and artificial intelligence.
Shares of Trump Media climbed more than 30% after December 18, when the company said it would merge with Google-backed TAE Technologies in an all-stock transaction. The stock ran even harder right after the news, jumping as much as 63% over two trading days.
Since Cryptopolitan reported the announcement, short interest has jumped 31% to nearly 16 million shares, close to the highest level seen since October. After the stock rose another 4% on Friday to $13.77, those short positions were worth about $218 million in bets that the price would fall, according to data from Yahoo Finance.
Trump Media is still losing money, and its shares are down almost 60% over the past 12 months even after the recent pop.
Right now, President Donald Trump owns 115 million shares, about 40% of the company, but after the merger closes, his stake would drop to roughly 20%.
Short interest near 16 million shares puts bearish positioning near levels last seen in October. The build came as the stock stayed volatile following the announcement. With the price still well below where it traded a year ago, some investors are betting the recent gains will not hold as the market absorbs the scale of the deal and the company’s ongoing losses.
Trump Media’s token plan increases exposure as America goes pro-crypto
At the same time, Trump Media said earlier this week it plans to issue a new token to shareholders, giving one token for each share held through a partnership with Crypto.com, and the token will operate on the Cronos blockchain.
Trump later said on Truth that the token holders could receive rewards tied to its products.
Chief executive Devin Nunes called the rollout “a first-of-its-kind token distribution” that will “reward Trump Media shareholders, and promote honest and open markets.” Devin also serves at the White House as chair of the Intelligence Advisory Board, where he advises the president on intelligence matters. The company said the tokens would be issued “in the near future.”
Founded in 2021, Trump Media has expanded its push into crypto while also moving into artificial intelligence and financial services. Despite that expansion, its shares have fallen more than 60% this year. The crypto plan adds to Trump-linked ventures that have already generated hundreds of millions of dollars and allegations of conflicts of interest from Democrats in Congress and even some Republicans.
Since returning to the White House in January, Donald has backed looser rules for crypto trading platforms and related businesses. The industry spent millions during the 2024 election cycle, backing candidates including him. Over the summer, he signed the country’s first major national crypto law, a step that folded crypto deeper into the financial system.
Still, investor appetite has cooled this year as traders pulled away from volatile bets. Bitcoin is on track for an annual loss after sliding from record highs set in October. Some Trump-linked bets have stumbled too. The TRUMP meme coin surged ahead of the January inauguration and quickly ranked among the most valuable tokens. Since then, it has lost more than 90% of its value.
Join Bybit now and claim a $50 bonus in minutes
Source: https://www.cryptopolitan.com/stock-bears-increase-pressure-on-trump-media/