Trump SPAC Shares Fall After Bullish Trading Week

Shares of Digital World Acquisition Corporation dropped by almost 11 percent Monday. According to CNN Business, this drop comes a week after the corporation saw a 1,657% increase in shares following former President Donald Trump’s announcement that Trump Media & Technology Group would be listed as a Special Purpose Acquisition Company (SPAC). 

Increase in shares continued for the company throughout the week following the announcement. After reaching an intraday peak of $175 on Friday, shares of Digital World Acquisition Corp. ended up over 845% for the week. 

Iceberg Research tweeted on Monday that following the initial excitement of the announcement, there are possible risks for investors in the near future. “Based on Trump’s track record, at current price, renegotiation is likely to keep more of the merged company for him,” said the firm, adding that SPAC holders do not currently own any of the project. “Trump has leverage, not them.”

On Tuesday, shares of Digital World Acquisition closed at $59, down 29%.

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