Hedge fund reveals $105 million short against Trump Media, the owner of Truth Social

A hedge fund has revealed it's betting against President Donald Trump's media company.

Qube Research & Technologies disclosed a net short position Monday in Trump Media & Technology Group — representing 2.5% of the Truth Social owner's outstanding shares — in Germany's Federal Gazette. The wager is valued at about $105 million, based on TMTG's market value of about $4.2 billion.

Breakout Point, the research firm that first spotted the filing, said in a note emailed to Business Insider that this was the first short wager against TMTG to be disclosed to regulators and QRT's second-biggest short in percentage terms. Other short-sellers have targeted the stock in the past.

This filing was likely made to comply with Germany's short-selling regulations, intended to increase market transparency.

QRT's press team said in an emailed statement to BI that the firm operated a diversified, quantitative long/short portfolio and did not comment on its positions.

"Our positions are model-driven and do not reflect a specific view on the fundamental of the company," they said.

TMTG shares tumbled to a six-month low this month after the company registered for sale shares belonging to Trump — who owns 53% of the business — and several other shareholders. TMTG didn't immediately respond to a request for comment.

Usually, an investor who is "long" on a stock has bought it expecting it to rise, while one who is "short" is betting that it will fall.

Short-sellers borrow shares of their target company and then sell them, hoping they can buy back the shares at a lower price, return them to the lender, and pocket the difference as profit.

TMTG went public in March last year via a merger with Digital World Acquisition Corp. The meme stock has tanked 44% this year and trades more than 80% below its peak price.

Total short interest was 4.9% on Monday, Nasdaq data showed.