SPAC stock Digital World Acquisition Corp. (NASDAQ:DWAC) made headlines recently for a string of reasons. First, it was announced that the company would be merging with the former U.S. President, Donald J. Trump’s Media company. Secondly, the share price reached the sky within days. Now, it has caught the attention of the CapitolTrades team for two purchases of stock by U.S. congressmen, both belonging to the Republican party.
First came Georgia’s Representative, Marjorie Taylor Greene. Greene was elected to the 117th Congress and was once referred to as a ‘Future Republican Star’ by Trump himself.
Larry Dean Buchson, Indiana’s Representative, also traded $DWAC three days after Greene’s purchase. Currently seated on the Energy and Commerce Committee, he was elected as a Republican for the 112th Congress, as well as the four succeeding ones.
Digital World Acquisition Shoots Up
Greene bought nearly 160-530 shares for a price of $94 per share. This made the trade’s total worth close to 50,000 USD. Prior to this October 22, 2021 purchase, $DWAC stock’s price had been ranging under $11. But only a day before Greene’s trade, the stock rocketed up to $45.50.
On October 25, Buchson spent around $1,001 to $15,000 on $DWAC, obtaining 12 to 178 shares. According to the trade’s filing, dated November 2, 2021, the price per share was $84.
DWAC’s closing price on Friday, Oct 22 was $108.84, which meant that the stock value rocketed upto 970.2% in just two days. Although, the day after Buchson’s purchase, the stock closed at $70.38. Since then, it has been rocking up and down.
It's all in Trump’s Words
In the last week of October, it was announced that Digital Acquisition Corp. was in tow for a merger with Trump Media & Technology Group. The latter is chaired by the 45th US President, Donald J. Trump.
The surprise jump of $DWAC price per share could be largely attributed to Trump’s press release statement regarding the Media company’s planned product: TRUTH Social, a social media platform competing with the likes of Facebook, Twitter and YouTube.
“I created TRUTH Social and TMTG to stand up to the tyranny of Big Tech,” Trump said. Many netizens would agree that the upcoming social media platform is Trump’s response to being banned from every major social media site available.
According to research by the CapitolTrades team, Greene has not traded prior to 2021. Starting January 20, 2021, she sold $GOOGL, $AAPL, $AMZN, & $FB shares. Since then, she has been buying stocks from diverse sectors. At present, no sales from under her name have been reported. Then, it could have been assumed that her purchase is a practical demonstration of her support for Trump.
But this was soon followed by Buchson’s trade, which although smaller in size, marked Buchson’s first trading activity since 2013.
So far, both politicians are the only ones who bought DWAC shares. The word among private investors is that the stock is headed for a short selling spree. But Greene is still holding, and this fact could lead the stock’s future in another direction.