Digital World Acquisition: Deal Could Fail


  • The borrow rate on Digital World Acquisition Corp has come down a lot along with the share price.
  • The option chain seems to indicate there is a high likelihood the SPAC deal doesn't close (or at least not before the end of March).
  • Trump looks like he's warming up to get back on Facebook/Twitter, etc.
  • An outright short is possible but potentially dangerous if the deal does go through and a lot of excitement builds again.
  • This idea was discussed in more depth with members of my private investing community, Special Situation Report. Learn More »

Former President Trump Holds Rally In North Carolina

Allison Joyce/Getty Images News

(Editor's Note: The below article included corrections made after the original publication. The original termination date was March 8, 2023, but it was in fact extended to September 8, 2023. Also, the stated redemption value was originally reported as $10.00)

Data by YCharts

Balance sheet Trump Media & Technology Group

Balance sheet Trump Media & Technology Group (DWAC S-4)

Truth Social Google Trends

Truth Social Google Trends (Alphabet)

Truth Social App downloads

Truth Social App downloads (Statista)

Geographic Interest Truth Social

Geographic Interest Truth Social (Alphabet/Google Trends)

Data by YCharts

This article was written by

Bram de Haas profile picture
Special-Situation And Event-Driven Ideas To Improve Risk Adjusted Returns
15 years of investing and I feel like a rookie in his first year at the academy. My roots are in the value school but over time I've learned to respect different approaches. I'm interested in what quants do, options traders do, and even what WallStreetBets is doing (keep your friends close and...)

I gravitate towards special-situations. That means situations around companies or the market where the price can move in a certain direction based on a specific event or ongoing event. This eclectic and creative style of investing seems to suit my personality and interests most closely.

Since 2020 I host a podcast/videocast where I discuss (special-situation/event-driven) market events and investment ideas with top analysts, portfolio managers, hedge fund managers, experts, and other investment professionals. I highly recommend it (pick episodes around topics that interest you) for the amazing guests that come on with regularity.

I've been writing for Seeking Alpha since 2013 after playing p0ker professionally. In 2018 I founded Starshot Capital B.V. A Dutch AIF manager. Follow me on Twitter @Bramdehaas or email me Dehaas.Bram at Gmail

Disclosure: I/we have a beneficial short position in the shares of DWAC either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: I'm net short through put options in small size relative to portfolio.

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