USA Rare Earth Gains 13.4% After $2.8B Serra Verde Acquisition
USA Rare Earth shares jumped 13.4% on Monday after the company agreed to acquire Brazil's Serra Verde for $2.8 billion, positioning it to challenge China's rare earth market dominance and pushing the stock to its highest level since Feb. 10. Short interest rose 14.6%, while call volume spiked ninefold.
1. Deal Details
USA Rare Earth agreed to acquire Brazil's Serra Verde Group for $2.8 billion in a transaction slated to close in Q3 2026, gaining access to a mine producing all four magnetic rare earth elements and bolstering its ability to challenge China's market dominance.
2. Stock Performance
Shares of USA Rare Earth jumped 13.4% following the acquisition announcement, marking a 92.9% gain in 2026 and reaching the highest level since Feb. 10, with the $14 price point and the 320-day moving average providing key technical support.
3. Short Interest and Options Activity
Short interest in USA Rare Earth rose 14.6%, accounting for 14.5% of the available float and raising the prospect of a squeeze, while call option volume spiked ninefold within the first half-hour of trading, led by May 26 and weekly April 24 25-strike calls.