Digital World Acquisition Corporation caused pandemonium in the New York Stock Exchange yesterday. The special purpose acquisition company’s stock rallied by more than 400% during yesterday’s trading session.
As a result, the NYSE had to halt trading for brief periods during the day to sort things out.
Digital World Acquisition To Merge With Trump Media & Technology Group
Digital World’s stocks traded heavily yesterday after former President Donald Trump announced his Trump Media & Technology Group will merge with DWAC.
This move will help transform TMTG into a publicly-traded company. Trump also announced that through TMTG, he will be launching his new social media platform called TRUTH Social.
As a result, investors swarmed the SPAC, causing it to surge more than 400% and hit a stock price high of $51. At yesterday’s close, DWAC closed at $55.50, which translated into a 356.83% gain from the closing price a day ago. When the smoke cleared during the afternoon trading, traders moved over 360 million shares of the company.
Digital World Was The Most Active Stock in NYSE and Nasdaq Yesterday
To say that the Trump announcement made waves was an understatement. DWAC stock activity became the single most actively traded stock on the Fidelity platform Thursday.
In addition, it was the most traded stock on the consolidated tape of the NYSE and Nasdaq listings yesterday. In fact, Fidelity-based buy orders for the company outnumbered sell orders three to one.
On WallStreetBets, a popular channel populated by retail investors, DWAC was among the top 10 most popular stocks discussed.
On Thursday, Digital World even generated more interest than GameStop, a very popular stock within the community. This might be seen as a sign that retail investors are the ones actively driving the stock prices for the SPAC.
The Securities and Exchange Commission has yet to respond to the flurry of activity regarding the Digital World.
Trump Raring To Fight Big Tech
Meanwhile, Trump said he’s bringing back the fight to Big Tech. The former president has an ax to grind against major social media companies.
After the January 6 Capitol riots, social media giants Twitter, Facebook, and YouTube banned Trump from using his accounts. Citing possible harm over misinformation, the social platforms froze Trump’s accounts so he can’t post any new messages.
Now, Trump is preparing to take back to the social airwaves. In his Wednesday press release, Trump said that he is developing the TRUTH Social platform. He said that the platform’s mission is to “create a rival to the liberal media consortium’ that will allow him to share his thoughts.
TRUTH Social is also a means to “fight back against the “Big Tech” companies of Silicon Valley, which have used their unilateral power to silence opposing voices in America.”
Trump Sued To Have His Twitter Account Reinstated
Earlier, the former president filed suit in a Florida court to have his Twitter account reinstated. Last October 2, Trump sought an injunction to compel Twitter to reinstate his accounts. He argued that the continued ban violates the First Amendment. The ban also contradicts Florida’s new social media law.
In his suit, Trump claims that Twitter is causing him irreparable harm in keeping his accounts banned. “We live in a world where the Taliban has a huge presence on Twitter, yet your favorite American President has been silenced.
This is unacceptable,” he argued. The former president also said that the social media company remains “coerced by members of the United States Congress” in continuously censoring him.
Watch the IPO Market Watch video reporting that Digital World Acquisition DWAC Stock Brings Donald Trump's Truth Social Public:
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