After Rising From $10 to $70 in Just 1 Week, Trump-linked SPAC Digital World Acquisition Corp. (DWAC) Has Officially Adopted Meme Stock Statusby Rohail Saleem · Wccftech
Digital World Acquisition Corp. (NASDAQ:DWAC), a Special Purpose Acquisition Company (SPAC), has gained tremendous prominence over the past few hours due to its involvement in a venture that is being spearheaded by the former US President, Donald Trump.
To wit, Digital World Acquisition is now slated to merge with the Trump Media & Technology Group (TMTG) in a deal that would value the group at $875 million. The joint press statement notes:
“Trump Media & Technology Group and Digital World Acquisition Corp. (NASDAQ: DWAC) have entered into a definitive merger agreement, providing for a business combination that will result in Trump Media & Technology Group becoming a publicly listed company ….”
The statement goes on to note:
“The transaction values Trump Media & Technology Group at an initial enterprise value of $875 Million, with a potential additional earnout of $825 Million in additional shares (at the valuation they are granted) for a cumulative valuation of up to $1.7 Billion depending on the performance of the stock price post-business combination.”
Crucially, TMTG’s plans to fund its initial growth plans by utilizing the $293 million that are already held in trust by Digital World Acquisition. According to multiple media reports that have emerged recently, former President Trump intends to launch a dedicated social media platform, dubbed the TRUTH Social. Additionally, TMTG also intends to launch a subscription-based, “non-woke” video-on-demand service that will feature entertainment programing, news, podcasts, and more.
This brings us to the crux of the matter. Digital World Acquisition shares were trading around the $10 price level toward the start of the week. However, in today’s early pre-market trading, the shares touched the $70 price level, corresponding to gains of around 600 percent in just 5 trading days! For context, this bull run eclipses previous ones recorded by Hyliion (NYSE:HYLN) and Lucid Group (NASDAQ:LCID) in their pre-merger phase.
Of course, this explosive outperformance by Digital World Acquisition shares is also being noticed by retail traders on WallStreetBets and other forums, thereby formally attaching the meme stock label with the SPAC. As per a tabulation by FINFORMER, DWAC shares were the top-mentioned stock symbol over the past 24 hours. Similarly, as per the tabulation by Swaggy Stocks, DWAC shares currently rank 10th on the WallStreetBets’ leadership board.
Given the outperformance of Digital World Acquisition shares and WeWork’s public market debut yesterday by merging with a SPAC, some analysts are now concluding that the long, harsh winter for SPACs has now officially ended.
Update: Digital World Acquisition Corp. (DWAC) Price just Hit $92
Digital World Acquisition Corp. shares are continuing their epic bull run. As an illustration, the stock just crossed the $92 price level in pre-market trading. This corresponds to crypto-level 820 percent gains over the past few trading days!