Aug 9, 2022
President Donald Trump’s Digital World Acquisition Corp (DWAC) has had a wild ride in 2022.
The shares went on an incredible rally from January to early March but weren’t able to maintain that upward momentum. Over the past six months, they’re down a painful 64%.
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The latest drop came on Tuesday, when the stock fell about 4% in midday trading. Let’s take a look at what’s possibly driving the price action.
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Mar-a-Lago raided by the FBI
On Monday night, Trump said that the FBI has raided his home at Mar-a-Lago in Florida, according to NBC News.
Trump also said that the FBI broke into his safe and the search was politically motivated.
“These are dark times for our Nation, as my beautiful home, Mar-a-Lago in Palm Beach, Florida, is currently under siege, raided, and occupied by a large group of FBI agents,” he said in an email statement issued by his Save America political committee.
“After working and cooperating with the relevant Government agencies, this unannounced raid on my home was not necessary or appropriate.”
A source with knowledge of the situation told NBC News that the search was related to classified information that Trump allegedly brought from the White House to Mar-a-Lago in January 2021.
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What now
How does the news have anything to do with Digital World Acquisition Corp?
Well, DWAC is a special purpose acquisition company (SPAC) that is expected to merge with Trump’s social media platform Truth Social. The platform launched in February of this year.
According to DWAC’s SEC filing earlier this month, the blank check company is asking for a one-year extension to complete the merger.
Both the Justice Department and the FBI declined to comment on Trump’s statement. But as the story unfolds, DWAC shares are certain to see more action ahead.
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Jing is an investment reporter for Moneywise. He is an avid advocate of investing for passive income. Despite the ups and downs he’s been through with the markets, Jing believes that you can generate a steadily increasing income stream by investing in high quality companies.
