In a news event attempting to bring together everything bad about the world, YOLO investors are pushing a Trump-affiliated SPAC to the moon, transform

Trump SPAC Becomes GameStop-Like Meme Stock by Promising 'Non-Cancellable' Community

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2021-10-24 00:30:05

In a news event attempting to bring together everything bad about the world, YOLO investors are pushing a Trump-affiliated SPAC to the moon, transforming it into a GameStop-like meme stock in hopes of supporting (or profiting off of) the former president’s goal of creating the world’s first “‘Non-Cancellable’ Global Community”—aka a social media site for conservatives.

One day after announcing that it planned to merge with Trump Media & Technology Group to create the conservative site TRUTH Social, shares of the special purpose acquisition vehicle Digital World Acquisition Corp. shot up 340 percent to well over $35, triggering volatility halts after it became one of the most popular names on the stock-pumping, AMC-loving Reddit board WallStreetBets and the “most traded stock with a value above a penny,” according to Bloomberg. The stock had been trading below $10 yesterday before the Trump announcement.

SPACs are an increasingly popular means through which private companies (like WeWork) can go public quickly and with less rigor than is involved in the traditional IPO process. The mechanism is that a shell company raises money through an initial public offering with the promise it will find a promising company to acquire. (This is why they are often referred to as "blank check companies.”) The company then uses that money to buy a private firm, after which it basically hands the business and name over to the acquired company.