- DWAC advanced 17.8% on Wednesday.
- Digital World Acqusition has been given the go-ahead for a merger vote with Trump Media on Friday.
- DWAC added almost 4% after the market closed.
- The SPAC is now trading at close to $1.6 billion.
Digital World Acquisition Corp (DWAC), the troubled special purpose acquisition company (SPAC) that has been trying for years to merge with Donald Trump's social media company, saw its shares soar more than 20% at some point on Wednesday. DWAC's price action comes as the market prepares for Friday's shareholder vote, which is expected to ultimately result in a SPAC merger with Trump's company Truth Social.
The broader market was flat midday in New York, but rebounded higher following Fed Chairman Jerome Powell's press conference after the central bank left interest rates unchanged. The S&P 500 gained 0.89%, while the Nasdaq gained 1.25%.
DWAC added 17.8% at Wednesday's close and then rose another 3.85% after the market closed, to $44.55.
DWAC News
Investors are eager for the long-awaited merger with Trump Media & Technology Group (TMTG) to finally go through. After more than three years of delays for various reasons, the most recent has been the lawsuit of two co-founders of TMTG to prevent Donald Trump from diluting his participation.
Andy Litinsky and Wes Moss had an 8.6% stake in TMTG, which they believe Trump is trying to dilute so he can control a much larger spoils from the impending merger.
However, on March 9, Judge Sam Glasscock III of the Delaware Court of Chancery said the shareholder vote can move forward on March 22. The merger was originally agreed to in October 2021.
Previously, the federal government had announced an investigation into the creation of DWAC, which delayed the combination. But in mid-February, the Securities & Exchange Commission (SEC) backed down and said the merger could go ahead.
DWAC is currently valued at $1.6 billion, but following the merger, the combination could be worth much more. Donald Trump owns approximately 90% of TMTG. The new company will be called Trump Media & Technology Group Corp. and will trade under the ticker TMTG.
DWAC forecast
DWAC has been in the doldrums all month, although its share price has moved largely sideways. This follows from the short-term 9-day moving average (blue) trending below its medium-term 21-day moving average (purple). However, the bulls do not seem ready to give up, as demonstrated by Wednesday's price rally.
On Wednesday it broke and closed above the 9-day SMA (blue) and its 21-day counterpart (purple). From here, the next target will be the psychological level of $50, which has served as support and resistance on several occasions since mid-February.
Above there, the January 23 and February 15 sessions presented resistance near or above the $56 level.
DWAC Daily Chart
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
