The stock price of SPAC company Digital World Acquisition Corp. stopped trading several times due to large fluctuations on Thursday. At one point, the intraday increase reached 400%, and the trading volume was extremely large. Earlier, there was news that Trump plans to launch a new social media platform and go public with it.
By the close, the stock was up 356.83% to $45.50.
Digital World Acquisition is the most actively traded stock on the Fidelity platform on Thursday. According to FactSet data, more than 470 million DWAC shares changed hands during Thursday's trading session, while the company's average 10-day trading volume was only 150,000 shares.
Trump's new company Trump Media & Technology Group (Trump Media & Technology Group) said on Wednesday evening that it “has reached a final merger agreement with DWAC to carry out a business merger, which will make Trump Media Technology Group a listed company, subject to regulatory and shareholder approval.”
Trump also said he will launch a platform called “TRUTH Social (TRUTH Social)” to counter social media giantsFacebookundTwitterOther companies.
Digital World Acquisition was established at the end of 2020, before which Trump lost to Biden in the re-election campaign.
According to alternative research provider Quiver Quantitative, DWAC was one of the 10 most popular stocks in Reddit's WallStreetBets chat room on Thursday, even surpassing “meme” stocksGame Station. This could indicate that retail investors active on social media platforms are driving the SPAC company's rise.
The US Securities and Exchange Commission (SEC) did not immediately respond to a request for comment.