Trump Media Demands SEC Probe Into Alleged DJT Stock Manipulation

Trump Media & Technology Group (TMTG), the company behind Truth Social, is raising the alarm over what it claims is suspicious trading activity involving its DJT stock. In a letter to the SEC’s acting chairman, the company points a finger at a UK-based firm, Qube, accusing it of shorting DJT shares without properly disclosing its position. TMTG says this kind of activity could be hurting its stock – and it wants regulators to step in.

Here’s what’s really going on behind the headlines.

What Exactly Is Trump Media Accusing Qube Of?

According to Trump Media, Qube reported in Germany that it was short six million DJT shares—worth more than $100 million. But TMTG says Qube didn’t make the same disclosure in the U.S. or in other major markets.

The company also claims that Qube’s short position has nearly doubled since then, reaching 11 million shares. If accurate, that would suggest Qube is making a major bet against the stock – without full transparency, raising concerns about possible market manipulation.

Undisclosed short selling on a large scale can put serious pressure on a company’s stock price. TMTG believes this may be one reason DJT stock has dropped 35% so far this year. However, the company admits that short sellers aren’t the only factor behind the decline.

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Stock Under Pressure, But Bigger Problems Remain

Trump Media is also facing major financial and legal challenges. It ended last year with less than $4 million in revenue, while reporting over $400 million in losses. On top of that, the company is under investigation for possible misuse of the Truth Social platform – issues that have added to investor concerns.

Even with these struggles, TMTG is pushing ahead with its crypto plans. It recently partnered with Crypto.com on a future ETF project and gained attention after market maker DWF Labs invested $25 million in World Liberty Financial, a DeFi platform tied to the Trump brand.

Bottom Line

While TMTG’s concerns about Qube raise valid questions, they are just one part of a much larger story. The company is under pressure from all sides – investors, regulators, and the market. Whether or not the SEC acts on this complaint, Trump Media still has to prove it can build a stable, successful business in both tech and crypto.