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USA Rare Earth Inc. (USAR) shares soared nearly 24% in Monday’s pre-market trade after the company announced a $1.6 billion deal with the Trump administration in exchange for an equity stake.
USA Rare Earth announced that, as part of the Department of Commerce’s CHIPS Program, the deal includes proposed federal funding of $277 million and a $1.3 billion senior secured loan.
In exchange, the Commerce Department will receive 16.1 million shares of common stock and approximately 17.6 million warrants, the company said.
Retail sentiment on Stocktwits around USA Rare Earth was in the ‘extremely bullish’ territory, with message volumes at ‘extremely high’ levels. The USAR stock was the top trending ticker on the platform at the time of writing.
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