Orbisa Insights | Take Notes

Shares of Trump Media & Technology Group (Ticker: DJT) have seen continued volatility in the securities finance market following a share lock-up expiration on September 25. Orbisa observed a sharp increase in the cost to borrow shares of DJT in the weeks leading up to the expiry, peaking at 5,304 basis points on September 20. Cost to borrow quickly cooled as more shares became available, falling below 700 basis points on October 11. However, as this supply has been consumed by borrowers, financing rates have begun to increase again, up 127% in the last week. As the US presidential election approaches, DJT’s stock price has surged nearly 50%, potentially putting short investors at risk for a squeeze.

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Published October 31, 2024.