The plan of the former president of the United States Donald Trump After creating a social media application, after Twitter and Facebook banned him from access, he obtained the backing of investors on Thursday, who caused the shares of a company that supports the project to skyrocket.
Trump Media and Technology Group and Digital World Acquisition Corp, a Special Purpose Acquisition Vehicle (SPAC), announced Wednesday that they will merge to create a new social media app called TRUTH Social.
Trump’s company said it plans a beta release – with a trial version – next month and a full rollout in the first quarter of 2022.
SPACs, like Digital World, use the money raised through an initial public offering to take a private company public.
The announcement of the operation did not offer the detailed business plans to which Wall Street He is used to SPAC mergers, from appointing a leadership team to presenting earnings and retail financing projections.
Still, Miami-based Digital World shares rose 356% to $ 45.50 a share on the Nasdaq, after gaining more than 400% during the session. At that price, its market capitalization stood at 1.4 billion dollars, up from 321 million on Wednesday.
It was the most traded security on the stock market, with more than 411 million shares that changed hands and attracted attention in forums such as Reddit. On Twitter and Stocktwits, some users applauded the upload with messages showing rockets and images of Trump.
Some investors said the market reaction reflected support for Trump, as well as the bet that a platform with him would attract a following.
“Up to this point there has not been a publicly traded vehicle for those who support the former president,” said Jake Dollarhide, co-founder of Longbow Asset Management.
Reference-www.eleconomista.com.mx