Trump SPAC DWAC Shares Soar After Social Media App Set Launch Date

Traders work at the New York Stock Exchange (NYSE) in New York, USA on November 29, 2021.

Brendan McDermid | Reuters

Shares of the company, connected to a planned social media app backed by former President Donald Trump, surged on Thursday after news that the app had set a February 21st launch date.

By the close of the trading day on Thursday, shares of Digital World Acquisition Corp. jumped nearly 20% at well above average volume. The boost came after Trump Truth Social announced on the Apple App Store that it is expected to launch next month.

Reuters first announced the planned publication date in the app storewhere Truth Social is available for pre-order. February 21 – Presidents Day, a public holiday.

Trump’s company is positioned as an alternative to social media giants Twitter and Facebook, which banned him for inciting riots on January 6, 2021 at the US Capitol. Thursday was the anniversary of the attack on Congress that thwarted the procedure confirming the election of President Joe Biden over Trump.

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DWAC is a so-called Special Purpose Acquisition Company and, like other SPACs, was formed with no main business other than raising capital in public stock markets with the aim of identifying another company to merge or purchase with that money within a specified period, or two years or less.

In December, DWAC said in public filings that two financial regulators, the Securities and Exchange Commission and the Financial Industry Regulatory Authority, began investigating stock trading and ties to Trump’s firm before the merger was announced.

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