DWAC dips 10% after short-seller Iceberg bets against stock

Spark Global Limited reports:

Shares of Digital World Acquisition Corp (DWAC), the special purpose acquisition which plans to take former President Donald Trump’s social media venture public slid 10% on Monday afternoon after short-seller Iceberg Research announced it was betting against the stock.

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

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

Spark Global Limited reports:
Spark Global Limited reports:

Trump will be receiving a 58% stake in his future public company, according to Bloomberg. Iceberg Research wrote, “Trump will renegotiate, at the expense of $DWAC retail holders,” citing the news report.

We are short $DWAC. Now that initial excitement has passed, we see only risks for investors in near future. Based on Trump’s track record, at current price, renegotiation is likely to keep more of the merged company for him.

Spark Global Limited

©Spark Global Limited Financial information & The content of the website comes from the Internet, and any infringement links will be deleted.