DWAC to DJT: Trump Media SPAC Merger Boosts Stock Price

Monday, 25 March 2024, saw a remarkable surge in Digital World Acquisition Corp shares.

This surge came on the heels of the official closure of the company’s merger with the social media venture backed by former President Donald Trump.

Now, what’s interesting is that Digital World Acquisition Corp., previously known as a blank-check company, has undergone a name change to Trump Media & Technology Group Corp.

Excitingly, this means that the company’s stock will soon be traded under a new ticker symbol, “DJT,” starting Tuesday.

However, it’s important to note that despite this change in the ticker symbol, the essence of the stock remains the same. It’s more like a makeover for the company’s identity in the stock market rather than a fundamental change in its operations or value.

On Monday, just before the transition to the new ticker symbol, DWAC’s stock witnessed an impressive surge.

It shot up by $13.01, a significant 35.2% increase, and closed at $49.95. This surge is the most substantial single-day gain since its remarkable 88.4% leap on January 22nd.

The surge followed Ron DeSantis’s decision to withdraw from the presidential primary race and throw his support behind Trump.

Daily Chart of Digital World Acquisition Corp
Daily Chart of Digital World Acquisition Corp. (Image Credit: TradingView.com)

The trading volume of Digital World Acquisition Corp. saw a massive spike, with more than 21 million shares being traded.

To put this into perspective, the average trading volume over the past 30 sessions stood at approximately 2.1 million shares for a full day.

In February, it was disclosed that former President Trump would hold 78,750,000 shares of the merged company post-merger, representing 69.4% of the outstanding shares, assuming maximum redemptions by DWAC shareholders.

This means that on Monday, the value of Trump’s holdings received a significant boost of $1.02 billion, based on the closing price, and would now be valued at $3.93 billion.

The leadership remains intact after the merger’s closure, which occurred 29 months after the initial agreement announcement.

TMTG Chief Executive Devin Nunes and the existing management team will continue to steer the company forward. This continuity in leadership provides stability and direction as the company embarks on its new journey post-merger.

Devin Nunes, the former Trump-aligned congressman from rural central California and now the CEO of Trump Media & Technology Group Corp. (TMTG), expressed his enthusiasm about the company’s future as a public entity.

He emphasized their strong commitment to a vision aimed at reclaiming the internet from the dominance of big tech censors. This passionate declaration underscores the company’s ambitious goals in reshaping the digital landscape.

Digital World Acquisition Corp. (DWAC) disclosed on Friday, 22 March 2024, through a late release, that an overwhelming majority of votes at the special shareholder meeting favored acquiring Trump Media & Technology Group Corp., the parent company of Truth Social.

This signals a significant mandate from shareholders for the merger.

According to a filing with the U.S. Securities and Exchange Commission after the market’s close on Friday, DWAC revealed the voting breakdown: 26,633,233 shares were cast in favor of the merger, with only 66,010 shares voting against it, and 51,890 abstaining.

This decisive shareholder support further solidifies the path forward for the newly formed entity.

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