Shares of Digital World Acquisition Corp., the special purpose acquisition company, or SPAC, that will merge with the newly formed Trump Media & Technology Group, has continued to gain steam.
DWAC’s stock closed at $45.50 per share in trading on Nasdaq on Thursday. Trading on the shell company was halted multiple times throughout the day due to volatility. Shares of DWAC have jumped more than 189% on Friday to $131.90 apiece as of the time of publication.
Meawnhile, Digital World Acquisition Corp's warrants, or contracts that are given to early investors that give them the right to purchase additional shares in the future at a certain price, are up more than 582%. The warrants trade under the ticker symbol DWACW.
A SPAC is a shell company with no active business operations that are listed on major exchanges where investors can buy shares. They use funds raised by their sponsors and investors to acquire other companies.
Once the merger is complete, Trump Media & Technology Group will have an initial enterprise value of $875 million. Trump Media & Technology Group’s growth plans will initially be funded by DWAC’s cash in trust of $293 million.
Trump’s personal stake in the company was not immediately clear. FOX Business' inquiry to TMTG was not immediately returned.
The former president's upcoming social media platform, dubbed Truth Social, is expected to debut a beta version in November and roll out nationwide during the first quarter of 2022.
Trump was banned from prominent platforms such as Facebook, Twitter and YouTube following the Jan. 6 Capitol riot. The companies argued the former president had violated their policies against inciting violence.
Trump said he started his social media initiative to "stand up to the tyranny of Big Tech."
"We live in a world where the Taliban has a huge presence on Twitter, yet your favorite American President has been silenced. This is unacceptable," Trump said in a statement. "I am excited to send out my first TRUTH on TRUTH Social very soon. TMTG was founded with a mission to give a voice to all. I'm excited to soon begin sharing my thoughts on TRUTH Social and to fight back against Big Tech. Everyone asks me why doesn’t someone stand up to Big Tech? Well, we will be soon!"
DWAC's trading volume is the largest for a SPAC merger announcement on record based on available announcement data from SPAC Research, per Dow Jones Market Data Group.
FOX Business' Thomas Barrabi contributed to this report