Shares of the special-purpose acquisition company (SPAC) set to purchase Donald Trump’s media company experienced a significant surge on Tuesday, reaching a six-month high in active trading. This boost came as the former president took a major step forward in his pursuit of becoming the Republican nominee for the 2024 presidential race.
In afternoon trading, Digital World Acquisition Co.’s stock (DWAC) saw a remarkable rally of 18.5%. This gain marked the largest one-day increase since July 21, 2023, when the SPAC's stock surged by an impressive 50.3% following the resolution of fraud charges.
Trading volume also saw a substantial increase, with 4.1 million shares being traded compared to the 30-day average of approximately 161,250 shares.
Trump's momentum was further confirmed by his projected victory, securing over half of the votes in Iowa’s Republican presidential caucuses. In contrast, Ron DeSantis was projected to receive just over 20%, placing second.
After overcoming delays due to regulatory scrutiny and financial restatement requirements resulting from a fraud investigation, a reverse merger with Trump Media & Technology Group is expected to be finalized in the first quarter of 2024.
The merger between Digital World Acquisition Co. and Trump Media will enable the latter to go public. Although the specific ticker and trading symbol are yet to be disclosed, this move signifies a significant step towards expanding Trump's media presence.
Looking ahead, the next Republican primary showdown will take place in New Hampshire on Jan. 23, followed by Nevada and South Carolina in early February.
Digital World Acquisition Co.’s stock has experienced impressive growth, surging 31.2% over the past three months. In comparison, the S&P 500 index has seen a more modest increase of 8.7%.