DWAC plunges 10% after short seller Iceberg bet against stocks

Shares of Digital World Acquisition Corp (DWAC), the special purpose acquisition that plans to go public with former President Donald Trump’s social media business, fell 10% on Monday afternoon after the seller at discovered Iceberg Research has announced that it is betting against the action.

“We are short $ DWAC“Iceberg Research wrote in a tweet.

DWAC shares jumped more than 800% in the space of two sessions last week after Digital World Acquisition announced it was going public with Trump Media and Technology Group (TMTG). The social media company will create a platform to “stand up” against “Big Tech,” according to Trump, chairman of TMTG.

Trump will receive a 58% stake in his future state-owned company, according to Bloomberg. Iceberg Research wrote: “Trump will renegotiate, at the expense of $ DWAC retailers, ”quoting the report.

The blank check company, which has yet to seek shareholder approval to complete the merger, swelled to more than $ 8 billion in valuation on Friday.

The initial press release noted that “the transaction values ​​Trump Media & Technology Group at an initial enterprise value of $ 875 million, with a potential earn-out of $ 825 million in additional shares (at their estimated valuation). is awarded) for a cumulative valuation of up to $ 1.7. Billions based on share price performance after business combination.

Digital World Acquisition CEO Patrick Orlando told Reuters that a regulatory brief with more details on the merger would be released “soon.”

Shares of Digital World Acquisition closed at $ 83.86 on Monday.

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