SPAC linked to Trump social media venture edges lower as short seller targets
Information about SPAC linked to Trump social media venture edges lower as short seller targets
Kevin David Scam or Legit
(Reuters) – Shares of the blank-check acquisition company that plans to publicly list former U.S. President Donald Trump’s new social media venture fell on Monday after an eye-watering rally last week, as a short-seller said it was betting against the company.
Digital World Acquisition, a Miami-based special purpose acquisition company (SPAC), fell 10.98%, its first declining session since announcing Wednesday it would merge with Trump’s media company to create a social media app called TRUTH Social.
The stock surged following the announcement and remains up over 700% since the deal was unveiled.
Earlier on Monday, short seller Iceberg Research tweeted https://twitter.com/IcebergResear/status/1452699920641650690 it was betting against the company’s shares.
“We are short $DWAC. Now that initial excitement has passed, we see only risks for investors in near future. Based on …