Former President Donald Trump made a surprise return to X, formerly known as Twitter, Thursday night after he surrendered at the Fulton County jail in Georgia. The maneuver sent Digital World Acquisition (DWAC) stock, the special purpose acquisition company aiming to take Trump’s own tech and social-media platform public, downward early before surging Friday.
Trump’s single post on X of his own mug shot Thursday night pushed DWAC stock down 3% early before paring losses in below-average volume. Shares then surged 9.6% to 15.27 Friday during market action. On Thursday, DWAC edged down 0.4% to 13.93.
The former president, who last used the social media platform on Jan. 8, 2021, posted his mug shot with along with a fundraising link for his 2024 presidential bid. Trump faces allegations that he headed a criminal enterprise attempting to overturn Georgia’s 2020 presidential election results.
“ELECTION INTERFERENCE,” the caption on the mug shot read. “NEVER SURRENDER!”
DWAC plans to take Trump Media and Technology Group (TMTG) public in a reverse merger. Trump Media is the parent of the conservative social-media platform Truth Social.
Truth Social launched after Twitter, now X, shut down Trump’s account following the Jan. 6, 2021, riot at the U.S. Capitol. Elon Musk bought the social media site in October and reinstated Trump’s account. Some industry observers contend that a return to X could redirect a large portion of Truth Social’s audience to the more mainstream channel.
Trump had previously signaled he would remain off X, staying only on Truth Social.
Trump And DWAC Stock
DWAC stock is tightly bound up in the value of the Donald Trump brand. Trump’s current status as the top Republican candidate for president figures squarely into the stock’s value. Federal charges could potentially tarnish that brand, according to company filings, although so far that has not been the case.
DWAC stock is down around 92% from its Oct. 22, 2021, high of 175, marked just after news of the Trump merger deal broke. Shares are down 81% since Musk began his purchase of Twitter in January 2022.
On July 21, DWAC surged 50% after the SPAC reached an $18 million dollar fraud settlement with the U.S. Securities and Exchange Commission (SEC).
The settlement with the SEC stipulates DWAC must pay $18 million in civil penalty fees if it completes its merger with TMTG. However, if the merger does not happen before Jan. 1, 2025, and if DWAC returns investor funds, the SEC has agreed to waive the penalty.
The SEC alleged improper merger discussions had taken place before an initial public offering filing. Meanwhile, DWAC this month is looking to once again extend its deadline to complete its merger. The SPAC has scheduled a special meeting for Sept. 5 to vote on the new extension.
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