Shares of the special purpose acquisition company (SPAC) Digital World Acquisition Corp. (NASDAQ: DWAC), attempting to take Donald Trump’s media company public, have surged over 60% over the past five trading sessions. The rally comes as retail investors regain interest in SPAC’s shares following Trump’s latest win in Iowa.
Digital World Reignites Investor Interest Amid Trump’s Growing Lead Among Republican Candidates
Digital World Acquisition Corp., a SPAC company aiming to merge with Donald Trump’s Trump Media & Technology Group, is up more than 68% in the past five days, driven mainly by the former US president’s win in Iowa last week.
Trump secured a historic victory in the Iowa caucus with an impressive 30-point margin, making him the leading Republican candidate for the upcoming presidential election in the US. The subsequent rankings included Ron Desantis in second place, Nikki Haley in third, and Vivek Ramaswamy in fourth.
Last month, Digital World said in a regulatory filing it “expects to complete that deal “as soon as the first quarter of 2024.” This announcement followed the submission of an amendment to its registration statement, encompassing a preliminary proxy statement and a prospectus related to the proposed business combination with Trump Media & Technology Group. This company operates Trump’s social media platform, Truth Social.
Digital World recently encountered a challenging period marked by legal and financial obstacles, including investigations by the Securities and Exchange Commission and federal prosecutors in New York City.
Moreover, the company fired its CEO, Patrik Orlando, in March 2023, citing “unprecedented headwinds.” These challenges resulted in several merger delays, causing a significant downturn in the SPAC’s shares over the past 12 months.
However, Trump’s recent victories have reignited investor interest again, particularly among retail traders. After Trump’s win in Iowa, Digital World was among the top trending tickers on the investor-focused social media site stocktwits.com.
Digital World Stock Price Analysis
Digital World’s shares opened 18.3% higher on Monday, and are sitting at $30.59 at the time of writing.
This marks the highest level for the stock since June 2022, propelling its market capitalization to $1.17 billion, according to Google Finance data. The stock’s 52-week trading range spans from a low of $12.34 to a high of $32.92.
At this price level, DWAC is still considerably below the all-time high of $97.54, reached in March 2022. In 2024 alone, the stock gained more than 80%.
Do you think Digital World will manage to complete its merger in Q1 2024? Let us know in the comments below.
Disclaimer: The author does not hold or have a position in any securities discussed in the article.
The post Trump-Linked SPAC’s Stock Up 60% in Last 5 Days as Iowa Win Boosts Confidence appeared first on Tokenist.
