- DWAC advances 17.8% on Wednesday.
- Digital World Acqusition has been cleared for a merger vote with Trump Media on Friday.
- DWAC added nearly 4% more afterhours.
- The SPAC is now trading near $1.6 billion.
Digital World Acquisition Corp (DWAC), the beleaguered special purpose acquisition company (SPAC) that has spent years trying to merge with Donald Trump’s social media company, saw its stock skyrocket more than 20% at some point on Wednesday. The DWAC price action comes as the market gears up for a shareholder vote on Friday that is expected to finally result in a merger for the SPAC with Trump’s Truth Social company.
The broader market was broadly flat around lunchtime in New York, but bounced higher following Fed Chair Jerome Powell’s press conference after the central bank held rates constant. The S&P 500 gained 0.89%, while the NASDAQ advanced 1.25%.
DWAC added 17.8% by the close on Wednesday and then rose another 3.85% afterours to $44.55.
DWAC stock news
Investors are excited for the long-awaited merger with Trump Media & Technology Group (TMTG) to finally go through. After being held up for the better part of three years for various reasons, the most recent holdup was on account of two TMTG co-founders suing to stop Donald Trump from diluting their stake.
Andy Litinsky and Wes Moss held an 8.6% share of TMTG ownership, which they believe Trump is attempting to dilute so he can control a much larger bounty from the impending merger.
However, on March 9, Delaware Chancery Court Judge Sam Glasscock III said the shareholder vote can go forward on March 22. The merger was originally agreed to in October of 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) rested its case and said the merger could proceed.
DWAC is currently valued at $1.6 billion, but post-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 TMTG ticker.
DWAC stock forecast
DWAC has been in a slump all month, though its price action has largely moved sideways. This is surmised by the short-term blue moving average trending beneath its middle-term purple moving average. Still, bulls do not look like they’re ready to give up, which is attested to by Wednesday’s price spike.
Wednesday’s session witnessed a break and close above both the 9-day Simple Moving Average (SMA) (blue) and its 21-day counterpart (purple). From here, the next target will be the $50 psychological level, which has served as both support and resistance on several occasions since mid-February.
Above there, the January 23 and February 15 sessions featured resistance near or above teh $56 level.
DWAC daily chart
