The shares of “Digital World Acquisition Corp.” or DWAC for short, rose by more than 100% before trading on it was stopped before noon yesterday, to be resumed trading at a later time, as the share price was 145% higher.
DWAC was the single most traded stock on the Fidelity platform on Thursday, and was by far the most traded stock listed on the New York Stock Exchange.
DWAC shares are more than three to one in stock available on the Fidelity platform. Just two hours after the session opened, more than 210 million shares of the company had already been traded according to the FactSet platform.
In a press release on Wednesday evening, Trump Media and Technology Group, a subsidiary of Donald Trump, announced that it had entered into an agreement to merge with DWAC, to become Trump Media Company, a publicly traded company.
Trump also made it clear that he would launch the Truth Social platform, which he said would counter the tyranny of big tech companies.
Twitter and Facebook have banned the former US president from using their platform since early this year, after he was accused of inciting riots at the Capitol on January 6 by a crowd of his supporters.
In the statement, the new company told Trump that “its mission is to create a rival to the liberal media consortium and to combat the big tech companies in Silicon Valley, which have used their unilateral power to silence dissident voices in America.”
Digital World Entertainment Corp. was founded in late 2020, shortly after Trump lost the presidential election to President Joe Biden.
The planned merger of Trump Media and Technology Group has an initial value of $875 million, with a potential additional dividend of $825 million in additional shares, with the company expected to have a market capitalization of $1.7 billion.