The prospect of a social media company controlled by Donald Trump, a company that could, if successful, dominate the narrative behind Trump and any future campaigns he may run, is terrifying. Imagine if Trump could have controlled Twitter or Facebook throughout his presidency.
Business Insider – A short-seller says the party is over for Digital World Acquisition Corp. after stunning rally, and that Trump, not the SPAC shareholders are in control https://t.co/HhTue55wJW pic.twitter.com/k3WnGeFpII
— Jason S ♋ 🇺🇸 (@theluckyman) October 25, 2021
That company got the attention of a short seller over the past two weeks as share prices skyrocketed before beginning a quick plunge in recent days. Iceberg Research said they would bet against Digital World Acquisition Corp. as they merge with Trump Media & Technology Group.
According to Business Insider:
‘Iceberg Research said in two tweets Monday that it was betting against Digital World Acquisition Corp., the blank-check company that announced last week plans to merge with Trump Media & Technology Group.’
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.
— Iceberg Research (@IcebergResear) October 25, 2021
With Trump in charge, investors may find themselves in a bait-and-switch situation. After all, Iceberg Research reminders investors that it will be Trump running the company according to his own moral and economic standards, which aren’t ones most investors would like to be involved in.
‘”Trump will renegotiate at the expense of DWAC retail holders,’ the firm said, referring to a report from Bloomberg Monday that said Trump could still seek new terms after the market cap of the stock soared past the $875 million the SPAC and Trump’s media venture originally agreed to.
“Shares of Digital World Acquisition Corp. receded Monday, falling as much as 12% to $82.61. That’s a drop from the stock’s high last week of $157.50.”
No opinion on the probability of success of TMTG. But SPAC holders don't own a piece of this project yet. Trump has leverage, not them.
— Iceberg Research (@IcebergResear) October 25, 2021
That burst of attention in the stocks over those few weeks of growth, says Iceberg Research, is over. Now that investors understand that Digital World Acquisition Co. is merging with Trump’s company, people want to pull out of their involvement or are passing on buying stock.
‘Considering the stock’s epic two-day rally and its massive retail-trader following, Trump’s media company may have jumped into the meme-stock ranks among other well-known companies like GameStop and AMC. Iceberg has been vocal on Twitter about its bet against AMC as well.’
Shares of the shell company that former President Donald Trump's new media company plans to merge with surged as much as 284% on Friday, prompting a series of trading halts for volatility.
Digital World Acquisition Corp. finished the day up 107%. https://t.co/8PBl53ZAK1
— CNN (@CNN) October 22, 2021
