DWAC, which is a special purpose acquisition company, or SPAC, has been set to be the vessel to take Trump Media and Technology Group public.
Now, its share price sits around $16 as markets slide, the appetite for SPACs dries up and Trump faces mounting legal peril.
DWAC secured $1 billion in financing from private investors in public equity, also known as PIPE, which would fund Trump Media after the merger.
By converting and selling these shares, PIPE investors also have the power to significantly dilute the holdings of other investors including former president Trump.
Trump Media, DWAC and the PIPE investors didn't immediately return a request for comment.