Two hedge funds sell stakes in Trump SPAC firm DWAC after merger news, big stock price rise
In an 8-K filing with the Securities and Exchange Commission on Thursday, DWAC said it had entered into an agreement and plan of merger with DWAC Merger Sub Inc., which is a wholly owned subsidiary of DWAC, and with Trump Media Technology Group and ARC Global Investments II.
Trump Media Technology Group, Trump’s so-far-unlaunched company, said in an announcement Wednesday that its “mission is to create a rival to the liberal media consortium and fight back against the ‘Big Tech’ companies of Silicon Valley, which have used their unilateral power to silence opposing voices in America.”
Trump was banned by Twitter, his favorite social media platform, and by Facebook earlier this year after he was accused of sparking the invasion of the Capitol.
DWAC’s sharp rise in price on the extraordinarily high volume of trades suggests that small-time retail investors are fueling the stock’s surge.
The stock’s ticker is among the most popular mentions on Reddit’s WallStreetBets, the site that earlier this year ignited the so-called “meme stock” price spikes of GameStop and AMC.
A top post on the WallStreetBets message board Friday featured what looked like the user’s equity portfolio, touting daily gains of over $10,000 from betting on DWAC. The post, which called the former president “Daddy Trump,” quickly drew more than 800 comments.
Anthony Scaramucci, the hedge fund founder who briefly served as Trump’s communication director in the White House, told CNBC’s “Squawk Box” on Friday that he hopes the SPAC continues surging in price, because, “The more it goes up, the less likelihood Donald Trump is running for president in 2024.”
“So I’m rooting for that SPAC,” said Scaramucci, who is now a Trump adversary.
“He was part of the insurrection,” he added. “You know, I personally think he’s a domestic terrorist. I want the guy out, as far away from politics as possible.”
Article source: https://www.cnbc.com/2021/10/22/hedge-fund-sells-stake-in-trump-spac-firm-dwac-after-merger-news.html