Shares of Digital World Acquisition Corp. (DWAC) experienced a significant surge on Monday following the confirmation of its merger with Trump Media & Technology Group Corp. (TMTG). This boost was further amplified by the news of former president Donald Trump successfully obtaining a reduction in his bond for his civil fraud case. These developments have set the stage for the company’s highly anticipated listing on Tuesday.
DWAC’s stock ended the day at almost $50 per share, marking a substantial increase of over 35%, as reported by Google Finance. The boost came after the company confirmed the successful completion of its merger with Trump’s TMTG. Additionally, DWAC announced that it will commence trading on the Nasdaq Stock Market on Tuesday under the ticker symbols “DJT,” which correspond to the initials of Donald J. Trump’s name.
“This is a significant milestone, not just for DWAC and TMTG as a united force, but for the entire media and technology industry,” remarked Eric Swider, former CEO of Digital World and current director of TMTG.
The completion of the merger for the new company, of which the former president owns approximately 58 percent, coincides with a recent decision by the appeals court. The court has reduced the bond required to appeal his New York civil fraud case from an initial potential payment of about $454 million to $175 million. This decision was made after he was found to have inflated his assets.
According to some analysts, the stock’s performance may have been boosted by the ruling, but it was the retail traders who played a significant role in driving up the shares of DWAC before its listing on Tuesday.
“The day when symbols are changed, you often witness significant upward movements. Retail traders are actively participating in this phenomenon today,” stated Matthew Tuttle, CEO of Tuttle Capital Management, during an interview with Newsweek.
When questioned about the impact of the bond reduction on the stock price movement, Tuttle attributed it to the influence of the retail investors who were actively involved in the market.
A representative of TMTG was contacted by Newsweek for comment via email on Monday. Any information we receive will be updated in the story.
DWAC, a special purpose acquisition company (SPAC), was established with the intention of pursuing mergers with other businesses. TMTG is the operator of Truth Social, a social media platform that was launched in February 2022 as a viable alternative to well-established social networks like Facebook and Twitter. This initiative was taken after Donald Trump, the expected Republican candidate for the 2024 presidential election, faced a ban from those platforms.
The company views itself as a unique online platform. Its executives expressed the same sentiment on Monday when they announced the successful completion of their merger with DWAC.
“We are committed to our mission of creating a movement that takes back the Internet from the control of Big Tech censors,” stated Devin Nunes, the CEO of TMTG. Nunes, a former GOP Congressman who chaired the House Intelligence Committee and has long supported Trump, expressed his enthusiasm as the company transitions into a public entity.