NEW YORK (Reuters). Former US President Donald Trump’s latest venture has inked the 2nd-largest private placement ever with convertible stock to merge with a blank-check acquire firm. This was thanks to their unusually favorable terms, even though they have not yet launched their social media app.

None of the 36 participants in this month’s $1B capital raise, which included many hedge funds and family offices among others, has revealed their identities. Sources have revealed to Reuters that they were worried about discussing Trump publicly. Trump was removed from Facebook (NASDAQ) and Twitter(NYSE:) due to his support for the January 6th attack on Washington.

According to experts in the industry, the structure of private equity investment (PIPE), was unusually advantageous to the investors. However, they may end up spending more than three times the amount that investors in blank-check acquisition firms paid for their initial public offering in September.

This is because they will be allowed to sell their shares right after the merger of the former president’s Trump Media & Technology Group (TMTG) and the blank-check acquisition firm, Digital World Acquisition Corp, is completed, rather than a few months later as is customary.

According to the agreement, they can buy shares at a discount of 40% from the price the shares traded in the last 10 days. The ceiling is $33.60 per share while the floor is $10.

These investors have the option to sell their shares as soon as the deal closes in order to make a profit. This would cause a drop in the share price. The deal could allow them to sell additional shares, if enough stock falls.

Day traders and Trump supporters, who have invested in “meme stocks”, are enjoying the merger. They may buy enough stock to offset the negative impact of PIPE investors selling their shares.

Another benefit for PIPE investors is the ability to shorten stock. This is something that’s not offered in other deals like this. This allows them to lock-in profits as they can borrow shares and sell them instantly. They then get the shares at a discount following the closing of the merger so that they can close their positions.