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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