By Sam Boughedda
Investing.com — Digital World Acquisition Corp (NASDAQ:DWAC), the SPAC taking former President Trump's planned social media platform public, has seen its shares tumble after Iceberg Research said it has taken a bet against the shares.
"We are short $DWAC," Iceberg tweeted.
DWAC shares fell 11% following the tweet, though they recovered a bit and are down just over 7.5%.
On Friday, Iceberg said Trump will renegotiate a new deal for himself at the expense of DWAC holders, and they reiterated that stance in their tweets today.
"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 added.
The research firm continued by stating that they have no opinion of the probability of the success of Trump Media and Technology Group (TMTG), but that the shareholders of DWAC don't yet own a piece of the project, meaning "Trump has leverage, not them."