The social media startup of former President Donald Trump is set to enter the public trading sphere following the completion of a significant blank-check deal. Trump Media & Technology Group is poised to begin trading on the Nasdaq under the ticker symbol DJT, as a result of its merger with Digital World Acquisition Corp. This move, culminating after over two years of complexities, could bestow Trump with nearly $4 billion in shares, although these will be bound by lock-up agreements and performance metrics, potentially restricting immediate liquidity.
The timing of this financial opportunity is particularly crucial for Trump, who has recently become the Republican presidential nominee. With mounting legal expenses, including four criminal indictments, the potential influx from the shares could offer some relief. This comes alongside a recent reduction in his bond for a fraud case by a New York appeals court. Digital World Acquisition Corp. shares saw a 14% increase to $41.99 on Monday, following the approval of the shareholder vote, signaling positive investor sentiment. The associated warrants of the SPAC also experienced a substantial rise.
Trump Media, led by Devin Nunes, a former Congressman, and Eric Swider of Digital World as a director, stands at a critical juncture. Its performance in the public market and ability to capitalize on Trump's political influence and following will be closely watched. The SPAC’s stock has been a hot topic among retail investors on platforms like Stocktwits and Reddit’s WallStreetBets, with many advocating for share purchases since the deal's announcement in 2021.
