SPAC's Digital World Acquisition Corp. Shares briefly halted trading on Thursday due to wild swings, following news that Trump plans to launch a new social media platform and go public with it.
DWAC's shares soared more than 130 per cent before the second suspension. So far, the stock has risen 240.76% to $33.94, suspending trading again.
Digital World Acquisition was the most actively traded stock on Fidelity on Thursday, and more than 260 million DWAC shares had changed hands by midday, according to FactSet.
In a press release on Wednesday night, Trump Media & Technology Group, Trump's new company, said that a final merger agreement had been reached with DWAC to provide a business merger, which would make Trump Media Technology a listed company, subject to regulatory and shareholder approval.
Trump also said he would launch a platform called TRUTH Social to counter social media giant Facebook IncAnd TwitterWaiting for the company.
Digital World Acquisition was founded at the end of 2020 after Trump lost to Biden in his re-election campaign.
According to alternative research provider Quiver Quantitative, DWAC was one of the 10 most popular stocks in Reddit's WallStreetBets chat rooms on Thursday, even surpassing "meme" game stations.. That could be a sign that retail investors active on social media platforms are driving SPAC's rise.
The Securities and Exchange Commission (SEC) did not immediately respond to a request for comment.