Trump Media & Technology Group has accused UK-based firm Qube of manipulating DJT stock, leading to negative financial implications for the company.
Trump Media's Accusations Against Qube
Trump Media & Technology Group (TMTG), the company behind Truth Social, is calling on US regulators to take a closer look at what it claims is suspicious trading activity involving its DJT stock. In a public letter addressed to the SEC’s acting chairman, TMTG alleged that UK-based firm Qube may be short selling DJT stock without properly disclosing its positions. TMTG believes this kind of trading could be damaging to its stock and is urging regulators to intervene.
Issues Surrounding DJT Stock
According to TMTG, Qube disclosed in Germany that it held a short position of six million DJT shares, worth over $100 million. However, Trump Media asserts that Qube has not made similar disclosures to US regulators. The firm also claims Qube’s position has nearly doubled to 11 million shares, suggesting a significant bet against the stock without necessary transparency, raising concerns of potential market manipulation.
Financial Struggles of Trump Media
While short-selling concerns are gaining attention, TMTG faces larger problems. The company reported less than $4 million in revenue last year while accumulating over $400 million in losses. The drop in DJT stock can be attributed not only to short sellers but also deeper issues such as ongoing investigations regarding potential misuse of the Truth Social platform. Despite financial difficulties, Trump Media is exploring opportunities in the crypto space, partnering with Crypto.com for an ETF project.
While TMTG's claims about Qube raise significant questions, they likely represent just one aspect of a larger situation. The company must prove its ability to build a sustainable business.
