Why Shares of Digital World Acquisition Corp. Are Falling Today
Shares of Digital World Acquisition Corp. (NASDAQ: DWAC) slumped nearly 12% as of 2:38 p.m. ET today following a recent short report from a hedge fund. DWAC is the special-purpose acquisition company (SPAC) taking the parent company of the Donald Trump-backed social media platform Truth Social public.
The hedge fund Kerrisdale Capital Management took to Twitter yesterday to announce that the fund is shorting DWAC. Kerrisdale's main thesis is that DWAC will not receive regulatory approval from the Securities and Exchange Commission (SEC) to merge with Trump Media & Technology Group (TMTG).
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Source Fool.com
