Donald Trump-Linked Stock Digital World Is Falling Today: Here's Why

  • A federal grand jury in New York has issued subpoenas to each board member of Digital World Acquisition Corp DWAC, the blank check company that has agreed to merge with Donald Trump's social media startup, Truth Social.
  • Truth Social, the Donald Trump-backed social network, aims to attract an "open, free, and honest global conversation" on its platform.
  • This is in addition to previously disclosed investigations into the blank-check company by the SEC and Justice Department.
  • As per the SEC filing, the investigations could delay, impede, or prevent the merger.
  • The transaction is expected to close in the second half of 2022.
  • Digital World Acquisition Corp. on Monday disclosed the subpoenas, adding that some of the information requested was about communications with called Rocket One Capital.
  • The filing also mentioned that Bruce Garelick is resigning from Digital World Acquisition's board of directors.
  • According to a Forbes report, Truth Social has around two million active users.
  • Responding to DWAC's filing, Trump Media & Technology Group (TMTG) stated, "TMTG is focused on reclaiming the American people's right to free expression. Every day, our team works tirelessly to sustain Truth Social's rapid growth, onboard new users, and add new features. We encourage—and will cooperate with—oversight that supports the SEC's important mission of protecting retail investors."
  • Price Action: DWAC shares traded 9.60% lower at $25.15 during the premarket session on the last check Monday.
  • Photo Via Wikimedia Commons

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