Short sellers betting against Donald Trump's DJT stock, associated with Trump Media & Technology Group and Digital World Acquisition, have faced significant challenges and losses. The stock's borrowing costs have skyrocketed, making it the most expensive U.S. stock to short, with borrowing costs over 200 times the average for U.S.-listed firms. This situation is attributed to a limited number of shares available for borrowing and a strong interest in betting against the company. As of today, short sellers have incurred $61 million in mark-to-market losses, contributing to a total of $158 million in losses year-to-date, according to S3 Partners. Experts suggest that the high borrowing rate, around 150% annualized based on the amount borrowed, coupled with the small pool of 3 million shares shorted so far, indicates that rates might normalize soon. However, the high cost and risk associated with shorting DJT stock, a SPAC, have led to caution among traders.
Breaking: Short sellers looking at $DJT tell me that the 3 million shares short so far is pretty small, which means the borrowing rates should normalize soon
BREAKING: Trading sources tell @FoxBusiness that the borrow rate for $DJT stock is astronomically high-- around 150% annualized fee based on how much you borrow. That means if you short this thing NOW "you better be right and you better be right fast or the short financing costs…
Trump Media is now the most expensive stock to bet against https://t.co/X7Zb7CqYDM
Trump Media is now the most expensive US stock to bet against. Borrowing costs over 200 times avg for US-listed firms b/c there’s a tiny amount of shares available to borrow & strong interest in betting against the company. So far, it’s been a losing bet: SPAC short-sellers lost… https://t.co/hS826L7GVu
Trump Media is now the most expensive US stock to bet against. Borrowing costs over 200 times avg for US-listed firms b/c there’s a tiny amount of shares available to borrow & strong interest in betting against the company. But so far, it’s been a losing bet: SPAC short-sellers… https://t.co/bnLOCsDUik
Betting against former president Donald Trump’s social media startup is one of the most difficult and expensive short trades in the market https://t.co/CvqZ9Lf320
a major factor in the $DJT move Trump Media Is Now the Most Expensive US Stock to Bet Against Borrowing costs over 200 times average for US-listed firms SPAC short-sellers lost $158 million on paper in 2024: S3 that's going to normalize and then this thing will get smoked
$DJT SHORT SELLERS DOWN $61M IN MARK-TO-MARKET LOSSES ON TODAY'S TRUMP MEDIA & TECHNOLOGY GROUP SHARE PRICE MOVE - S3 PARTNERS SHORT SELLERS TARGETING DIGITAL WORLD ACQUISITION TRUMP MEDIA & TECHNOLOGY GROUP DOWN $158M YTD IN MARK-TO-MARKET LOSSES - S3 PARTNERS
Why Betting Against Donald Trump’s DJT Stock Is a Super Risky Trade https://t.co/dvrDleJCdp