Shares of the blank-check special purpose acquisition company (SPAC) that agreed to merge with former U.S. President Donald Trump’s “Truth Social” venture have outperformed all other SPACs ever.
Former U.S. President Trump to launch new social media platform TRUTH Social on February 21st
Former U.S. President Donald TrumpDigital World Acquisition Corp (DWAC), which inked an $875 million deal in October to merge with Trump Media & Technology Group Corp (TMTG), currently ranks as the best performing SPAC stock ever, according to SPAC Research.
Digital World’s shares ended trading at $73.12 on Friday, way above their $10 initial public offering price. This infers a valuation on the combined entity of close to $13 billion, including debt.
The financial underperformance of most SPACs makes Digital World’s stock rally, driven by Trump supporters and retail investors, all the more notable.
Apple Inc’s App Store currently lists February 21 as the date that Trump’s new social media app, Truth Social, will be available to download.
Digital World CEO Patrick Orlando and other SPAC insiders paid $11.8 million to receive founder and placement shares in the SPAC that are now worth roughly $620 million, according to regulatory filings and Reuters calculations.
TRUTH Social is America’s “Big Tent” social media platform that encourages an open, free, and honest global conversation without discriminating against political ideology
Follow the TRUTH!
What exactly is TRUTH Social’s “Big Tent” approach?
Big Tent is a new way to describe “inclusivity” in America. Think of a giant outdoor event tent at your best friend’s wedding. Who’s there? The combination of multiple families from all over the United States, and the world. Uncle Jim from Atlanta is a proud libertarian. Aunt Kellie from Texas is a staunch conservative. Your cousin John from California is a die-hard liberal. And guess what? They’re all together to have an amazing time and share their viewpoints of the world. Although we don’t always agree with each other, we welcome these varied opinions and welcome the conversation.
Let your voice be heard. Sign up, join the conversation, and share your unique opinion by posting a TRUTH, Re-TRUTH, photo, news story, or video link to communicate with your friends, customers, and the world. Stay informed about breaking news while staying directly connected with the people who influence you – don’t be shocked if they take your TRUTH viral!
Key Features
• Profile – Express your unique personality by setting up a profile, avatar, and background. Begin to track your personal connections through follower and following counts as well as history for your posts and likes.
• TRUTH Feed – Get the scoop on the latest thoughts and activities from the people, organizations, and news outlets that interest you. The TRUTH Feed contains posts from all those you follow brought to life with the help of thumbnail photos, links, and more.
• Search – TRUTH Social really starts to become interesting as you connect with others. Search for a voice that you find interesting and easily follow them right from the search list or view their profile first before deciding.
• Notifications – Stay engaged as you build a following. See who’s following you and who’s interacting with your TRUTH’s.
TRUTH Social is America’s “Big Tent” social media platform that encourages an open, free, and honest global conversation without discriminating against political ideology.
You might want to wait until the SEC investigations are concluded before investing. They tend to frown on insider trading, just ask Martha Stewart. Even so, SPACs are notorious for making lots of money for a few big investors, and losing lots of the small investors’ money.
Despite your misinformation, you go ahead and “think” what you have to — except your comment on SPACs is just appalling. You have no idea what SPACs are (you’re TV smart on it) and have no business trying to inform others on it.
For those who don’t know but actually want to know, here is a SPAC (long explanation but I’ll keep it as succinct as possible): a SPAC share is, in effect, a 10 dollar savings bond that can’t be redeemed until the 2 year expiry or a merger is announced. So if you buy a share of a SPAC for 10$, you do not lose that money. It is likely the safest 10$ on the NYSE. The SEC rules for a SPAC is shares offered have a net liquid value of 10$. That money is in a trust (that 10$ also receives a minimal percent return, maybe 1/2 percent a year). Note: IF you purchase a SPAC share above 10$ you are risking anything above 10$. (note that almost all SPACs are in and around 10$)
A SPAC IPO typically comes with a 2 year expiration contract. You buy a SPAC share at IPO, the SPAC has 2 years to find a company acquisition/merger. A SPAC’s purpose is to find a private company and take it public. Again it must be done within 2 years or they must return the 10$ per share (plus minor interest) to shareholders. However, if the SPAC finds a target company to buy/merge with, the SPAC shares become the new acquired private company’s public stock. But 2 weeks before the execution of the merger/share transfer, you have the right to say “just give me the 10$ per share back (plus the minor interest). But if you opt to not take the 10$ plus interest back, your shares are now just like any other public traded company shares on the market, open to go high or go to nothing. That’s the risk you are made well aware of well before the acquisition/merger. The SPAC manager/managers have a big interest in seeing not only a merger acquisition happen before 2 year expiration but also the post acquisition.merger share transfer to take off. But all stocks(equities) have that risk. Anything not named Google or Apple or Microsoft (Blue Chips to SP500) come with higher risk.
But here is the kicker and anyone who bought DWACU (notice the U at the end – stands for unit). If you buy a SPAC share as a unit/before what’s called the warrant split, you typically get a free option(warrant) for every two shares of the SPAC you bought. Once the warrant split occurs, on the exchange you’ll notice that DWACU is no longer but instead it is DWAC shares AND separate DWACW shares. The DWACW shares are now traded as their separate share. When the DWAC shares were first offered they were offered as DWACU (there was no DWACW yet). So if you bought 2 DWACU shares(before warrant split) you now own 2 DWAC shares AND 1 DAWCW (a warrant). You cannot lose on the warrants if they were given to you at warrant split time. The warrant is a right but not the obligation to purchase a post acquisition/merger share for 12$ within, typically, 2 years after the acquisition/merger. So if DWAC’s merger creates a stock that is 50$, you make 38$ per warrant plus you still have the 2 DWAC shares that you could have sold at the peak, held for post acquisition/merger(riskier) or just opted to take the ten dollars back. Obviously If the post acquisition/merger stock is below 12$, you don’t exercise the warrant, it costs you nothing, it expires.
Hopefully that help at least one or two people to not be misinformed by the previous post (there are investing/trading misinformation aplenty here — but it is worse when it is obviously being done to push one’s politics).
How is this item of any relevance to this site’s stated purpose? Other than a cursory reference to the App Store? It would be nice if you could keep the political shit out of the news articles. It’s bad enough that comments are often full of this fucking drivel!
Ahhh, let me guess you absolutely despise Trump. Don’t read you questioning Cook stories as SJW politician with a cursory references on many stories to Apple.
This is history as the first ex-president to start an unbiased social media network where all voices are heard, not censored, silenced or taken down.
That also points to the broader topic namely abuses of Big Tech as a whole and here is one man fighting back against the majority cabal of censors and the defenders of the status quo.
Look forward to many more stories on this subject and their progress in the future…
Is the SPAC, whack, Mac? Like MJ said, don’t matter if you’re white or black. Just be on the attack against crack, Jack. We live in a world of abundance, not lack. Don’t be just one of the pack. We’ve got your back.
While the underpinnings of these posts are done by unhinged political dimwits upvoting themselves or downvoting in numerous alternate names without a scintilla of concern for any individual investor, please remember that trading in shares of a new company should be done with caution. The DWAC SPAC has a guaranteed net value of 10$ only. Once the merger happens, the 10$ is no longer guaranteed. Currently anything above 10$ is a speculation price. The DWACW (warrants) have no guaranteed net value now or later. The current DWACW price is purely speculation. Also remember that the merger could fall through. If that happens DWACW shares are worthless, DWAC shares are 10$ (plus minor interest) value only.
If the merger happens, the new social media company mean projected user base likely has a fair valuation maybe at its current price or maybe closer to 10$. If it underperforms user numbers the value I closer to 10, if it over performs user base numbers then it is likely undervalued right now.
Protect your capital, only use that amount of money you are comfortable losing. IMHO never play higher risk with more than 5% of your capital. If that over performs and you get outsized returns, that is the potential payoff for the outsized risk taken. But keep the majority of your capital in bluechips like Apple, Microsoft, Walmart, Home Depot etc etc.
You might want to wait until the SEC investigations are concluded before investing. They tend to frown on insider trading, just ask Martha Stewart. Even so, SPACs are notorious for making lots of money for a few big investors, and losing lots of the small investors’ money.
https://www.businessinsider.com/trumps-new-media-company-federal-regulators-investigating-2021-12?op=1
Despite your misinformation, you go ahead and “think” what you have to — except your comment on SPACs is just appalling. You have no idea what SPACs are (you’re TV smart on it) and have no business trying to inform others on it.
For those who don’t know but actually want to know, here is a SPAC (long explanation but I’ll keep it as succinct as possible): a SPAC share is, in effect, a 10 dollar savings bond that can’t be redeemed until the 2 year expiry or a merger is announced. So if you buy a share of a SPAC for 10$, you do not lose that money. It is likely the safest 10$ on the NYSE. The SEC rules for a SPAC is shares offered have a net liquid value of 10$. That money is in a trust (that 10$ also receives a minimal percent return, maybe 1/2 percent a year). Note: IF you purchase a SPAC share above 10$ you are risking anything above 10$. (note that almost all SPACs are in and around 10$)
A SPAC IPO typically comes with a 2 year expiration contract. You buy a SPAC share at IPO, the SPAC has 2 years to find a company acquisition/merger. A SPAC’s purpose is to find a private company and take it public. Again it must be done within 2 years or they must return the 10$ per share (plus minor interest) to shareholders. However, if the SPAC finds a target company to buy/merge with, the SPAC shares become the new acquired private company’s public stock. But 2 weeks before the execution of the merger/share transfer, you have the right to say “just give me the 10$ per share back (plus the minor interest). But if you opt to not take the 10$ plus interest back, your shares are now just like any other public traded company shares on the market, open to go high or go to nothing. That’s the risk you are made well aware of well before the acquisition/merger. The SPAC manager/managers have a big interest in seeing not only a merger acquisition happen before 2 year expiration but also the post acquisition.merger share transfer to take off. But all stocks(equities) have that risk. Anything not named Google or Apple or Microsoft (Blue Chips to SP500) come with higher risk.
But here is the kicker and anyone who bought DWACU (notice the U at the end – stands for unit). If you buy a SPAC share as a unit/before what’s called the warrant split, you typically get a free option(warrant) for every two shares of the SPAC you bought. Once the warrant split occurs, on the exchange you’ll notice that DWACU is no longer but instead it is DWAC shares AND separate DWACW shares. The DWACW shares are now traded as their separate share. When the DWAC shares were first offered they were offered as DWACU (there was no DWACW yet). So if you bought 2 DWACU shares(before warrant split) you now own 2 DWAC shares AND 1 DAWCW (a warrant). You cannot lose on the warrants if they were given to you at warrant split time. The warrant is a right but not the obligation to purchase a post acquisition/merger share for 12$ within, typically, 2 years after the acquisition/merger. So if DWAC’s merger creates a stock that is 50$, you make 38$ per warrant plus you still have the 2 DWAC shares that you could have sold at the peak, held for post acquisition/merger(riskier) or just opted to take the ten dollars back. Obviously If the post acquisition/merger stock is below 12$, you don’t exercise the warrant, it costs you nothing, it expires.
Hopefully that help at least one or two people to not be misinformed by the previous post (there are investing/trading misinformation aplenty here — but it is worse when it is obviously being done to push one’s politics).
Maybe so, I’m going to wait and see how he launders rubles with it,
Doublethink from 1984
How is this item of any relevance to this site’s stated purpose? Other than a cursory reference to the App Store? It would be nice if you could keep the political shit out of the news articles. It’s bad enough that comments are often full of this fucking drivel!
“cursory reference to the App Store” that’s all?
Ahhh, let me guess you absolutely despise Trump. Don’t read you questioning Cook stories as SJW politician with a cursory references on many stories to Apple.
This is history as the first ex-president to start an unbiased social media network where all voices are heard, not censored, silenced or taken down.
That also points to the broader topic namely abuses of Big Tech as a whole and here is one man fighting back against the majority cabal of censors and the defenders of the status quo.
Look forward to many more stories on this subject and their progress in the future…
Trump haters need to GroeB a pair.. he’ll be back in 2024. Sucked in, Trump haters!
Sounds like every trolls wet dream, no thank you,
No, that would be Twitter.
Is the SPAC, whack, Mac? Like MJ said, don’t matter if you’re white or black. Just be on the attack against crack, Jack. We live in a world of abundance, not lack. Don’t be just one of the pack. We’ve got your back.
Downvoters have tiny wieners and tiny brains.
Looks like a lot of tiny wieners
And brains out there…
Think different. Build it they will come. Unless Amazon pulls the plug because mean people and free thinking.
While the underpinnings of these posts are done by unhinged political dimwits upvoting themselves or downvoting in numerous alternate names without a scintilla of concern for any individual investor, please remember that trading in shares of a new company should be done with caution. The DWAC SPAC has a guaranteed net value of 10$ only. Once the merger happens, the 10$ is no longer guaranteed. Currently anything above 10$ is a speculation price. The DWACW (warrants) have no guaranteed net value now or later. The current DWACW price is purely speculation. Also remember that the merger could fall through. If that happens DWACW shares are worthless, DWAC shares are 10$ (plus minor interest) value only.
If the merger happens, the new social media company mean projected user base likely has a fair valuation maybe at its current price or maybe closer to 10$. If it underperforms user numbers the value I closer to 10, if it over performs user base numbers then it is likely undervalued right now.
Protect your capital, only use that amount of money you are comfortable losing. IMHO never play higher risk with more than 5% of your capital. If that over performs and you get outsized returns, that is the potential payoff for the outsized risk taken. But keep the majority of your capital in bluechips like Apple, Microsoft, Walmart, Home Depot etc etc.