SPAC company DWAC shares soared 240%, Trump wants to launch a new social media company and merge with it
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SPAC Company Digital World Acquisition Corp. The stock price stopped trading several times due to large fluctuations on Thursday, after news that Trump plans to launch a new social media platform and merge with it.
Before the second suspension of trading, DWAC’s share price soared by more than 130%. So far, the stock has risen by 240.76% to 33.94 US dollars, and trading has been suspended again.
Digital World Acquisition is the most actively traded stock on the Fidelity platform on Thursday. According to FactSet data, as of midday trading, more than 260 million DWAC shares have changed hands, while the company’s 10-day average trading volume was 150,000 shares.
Trump’s new company, Trump Media & Technology Group, said on Wednesday night that with DWAC “has reached a final merger agreement to provide business combinations, which will make Trump Media Technology Group a public company. But it must comply with the approval of the regulators and shareholders.”
Trump also stated that he will launch a platform called “TRUTH Social” to counter companies such as social media giants Facebook (328.69, 4.08, 1.26%) and Twitter (62.11, -0.13, -0.21%) .
Digital World Acquisition was established at the end of 2020. Before that, Trump lost to Biden in the re-election campaign.
According to alternative research provider Quiver Quantitative, DWAC is one of the 10 most popular stocks in the WallStreetBets chat room of Reddit on Thursday, even surpassing the “meme” game station (173.97, 4.17, 2.46%). This may indicate that retail investors active on social media platforms are driving the rise of the SPAC company.
The US Securities and Exchange Commission (SEC) did not immediately respond to a request for comment.
