After the SPAC, at least one hedge fund sold its stake. that firm announced plans to merge with the social media companyFormer President planned Donald Trump

Lighthouse Investment Partners is one of the nine Hedge Funds that hold SPAC stakes. It told CNBC that the fund had withdrawn its Digital World Acquisition investments after discovering about the merger.

The fund stated that Lighthouse did not know of the merger, and therefore no longer has unrestricted shares in the SPAC.

A Sept. 30 regulatory filing revealed that Lighthouse held 3.2million shares or 11.2% in the SPAC. 

Digital World Acquisition Corp. was the one to be sold. a huge rise in the price of its stock price Thursday on the heels of the merger news.

DWAC shares spiked more than 100% on FridayAfter the stock had more than quadrupled its price during the last session.

The hedge fund may have sold DWAC shares to make profits or was it concerned about Trump’s reputation. Trump was twice impeached and charged with inciting the Jan. 6 Capitol riot.

D.E. D.E. Lighthouse Investment Partners and Saba Capital Management along with Highbridge Capital Management and Lighthouse Capital Management were major early investors in the SPAC.

The DWAC holdings for hedge funds are based upon regulatory filings dating back to September just before the merger target was set. These numbers don’t necessarily reflect their actual stakes.

Highbridge Capital Management and Atw Spac Management had no comment, and the rest of the hedge funds didn’t immediately respond to CNBC’s requests for comment.

ARC Global Investments II LLC, one of the major investors in DWAC, is listed as one fund. Patrick Orlando, the chief executive officer of DWAC and the managing member for ARC Global, is named in a regulatory filing.

On Thursday, in an 8-K filing with the Securities and Exchange Commission, 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.

SPACs, or special purpose acquisition corporations, are also called blank-check businesses. They are used to raise capital in the public equity market and to then merge with another private company that already has an operating business.

After the merger, the stock of this firm will trade on the SPAC’s stock ticker.

SPAC investors do not usually know the identity or the location of any other company that is being targeted for merger.

Trump’s company, the so-far-unlaunched Trump Media & Technology Group, said in an announcement WednesdayThe “mission of the group is to build a competitor to the liberal media network and defeat the Silicon Valley ‘Big Tech’ companies, who use their unilateral power to suppress opposing voices.

Twitter banned Trump, which is his preferred social media platform. Facebook also blocked Trump earlier in the year, after he was charged with starting the Invasion of the Capitol.

This is news breaking. Stay tuned for new updates.