Trump SPAC’s Zealous Investors Are Both a Blessing and a Curse
- DWAC sponsors have until Dec. 8 to get extension approved
- Ideological holders, Trump fans may not understand SPAC rules
There are 653 SPACs left in the US after the boom went bust last year. Only one of them still trades at the kind of frothy levels that was common during the height of the go-go days: Digital World Acquisition Corp.
Digital World is the Miami-based company that’s planning to merge with Donald Trump’s media venture, and the 67% premium that it trades at is above every other special purpose acquisition company in the market today, a reminder of just how powerful Trump’s grip remains on his base. Scores of retail investors loyal to the ex-president make up a large chunk of the holders of Digital World’s stock and, regardless of the mounting challenges the merger faces (both the SEC and Justice Department have launched probes), they’re not selling.