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Former US President Donald Trump leaves Trump Tower in Manhattan on July 19, 2021. James Devaney/GC Pictures
James Devaney/GC Pictures
Brief-seller Iceberg Analysis stated it’s shorting shares of the SPAC set to merge with Trump’s media firm.
Iceberg stated Trump nonetheless has all of the leverage and that SPAC shareholder do not personal any a part of the corporate but.
Shares of the SPAC, Digital World Acquisition Corp., slumped Monday.
The SPAC set to carry Trump’s media firm public has already drawn a short-seller’s consideration after an epic run final week.Iceberg Analysis stated in two tweets Monday that it was betting in opposition to Digital World Acquisition Corp., the blank-check firm that introduced plans to merge with Trump Media & Know-how Group final week. “We’re quick $DWAC,” Iceberg stated in a tweet. “Now that preliminary pleasure has handed, we see solely dangers for traders in close to future. Primarily based on Trump’s monitor report, at present value, renegotiation is more likely to hold extra of the merged firm for him.”In a second tweet, the quick vendor stated, “No opinion on the chance of success of TMTG. However SPAC holders do not personal a chunk of this undertaking but. Trump has leverage, not them.” The tweets supplied a phrase of warning particularly to retail traders.
‘Trump will renegotiate on the expense of DWAC retail holders,” the agency stated, referring to a report from Bloomberg Monday that stated Trump may nonetheless search new phrases after the market cap of the inventory soared previous the $875 million that was initially agreed to by the SPAC and Trump’s media enterprise. Shares of Digital World Acquisition Corp. receded Monday, falling as a lot as 12% to $82.61. That is a drop from the inventory’s excessive final week of $157.50.Contemplating the inventory’s epic two-day rally and its large retail-trader following, Trump’s media firm might have shot into the meme-stock ranks amongst different well-known corporations like GameStop and AMC. Iceberg has been vocal on Twitter about its wager in opposition to AMC as properly.A consultant from Trump Media & Know-how Group didn’t instantly reply to Insider’s request for remark.
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