Since announcing its all-stock merger with TAE Technologies in mid-December, DJT has seen short interest rise to 18% of its float, up from 11% just one month earlier. According to recent filings, hedge funds and dedicated short sellers have more than doubled their bets against the company, borrowing over 25 million shares to sell short. Trading volume in DJT shares has also spiked by 40% on days when merger details have been disclosed, signaling growing skepticism among institutional investors about the deal’s long-term value creation.

The merger, valued at $6 billion, is structured as an all-stock transaction that is expected to close in mid-2026, pending regulatory approval. Upon completion, the combined entity will be among the first publicly traded fusion energy companies. Management projects the new fusion-powered subsidiary will begin initial construction later this year, with first phase output targeted for 2029. CEO Devin Nunes has emphasized that the deal will unlock access to TAE’s existing $1.3 billion in private funding commitments from Chevron, Google and Goldman Sachs.

In a recent statement, DJT management outlined the criteria for hosting the world’s largest fusion power generation site. Applicants must provide at least 20 acres of developable land, have a grid interconnection capable of handling gigawatt-scale output, and support a security perimeter. In a strategic move to secure favorable permitting and tax incentives, Nunes specified that only state and local governments in red states will be considered. The company plans to review proposals over the next six weeks and begin ground-breaking by year-end.

DJT’s balance sheet shows nearly $3 billion in Bitcoin reserves, which management values as a strategic hedge against dollar depreciation. By contrast, its Truth Social platform generates nominal revenue—estimated at under $50 million in the last quarter—leaving investors concerned about the company’s ability to fund fusion project capital expenditures internally. Analysts note that bridging this gap will require either equity raises or strategic partnerships, both of which could dilute existing shareholders or delay project timelines.