The parent company of Donald Trump’s social media platform Truth Social is up close to 8% ahead of its first trading sessions, having completed one of the most reported SPAC deals in years.
Shares in Digitial World Acquisition Corp, the SPAC merging with Trump Media & Technology Group, soared 35% on Monday after it was revealed the deal had been completed. The SEC approved the merger last month.
Trump Media & Technology Group Corp (NASDAQ:DJT), which owns Truth Social, will receive over US$275 million in capital and will provide a needed boost to Trump’s finances as he faces a mounting number of legal and financial troubles.
At current levels, Trump’s 60% stake in the company is believed to be worth around US$6 billion, albeit subject to a six-month lock-up agreement.
Trump’s shares will also be subject to performance requirements, meaning he may not be able to immediately crystalise all of the expected gains.
Operations at the media group have struggled in recent times, having lost US$49 million in the nine months to September 2023, with revenues reaching only US$3.4 million.
Julian Klymochko, CEO at Accelerate Financial Technologies, said: “The underlying business fundamentals will matter at some point. The stock can defy gravity for only so long.
“DJT is the mother of all meme stocks.”