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Digital World Acquisition stock has soared as much as 239% since former President Donald Trump won the Iowa caucus last week.
The SPAC saw its stock price soar from about $17 last week before the Iowa caucus results to as high as $58.66 on Tuesday, as it is looking increasingly likely that Trump will secure the Republican Party's 2024 nomination for president.
Since going public in 2021, Digital World Acquisition has been seeking a merger with Trump's Truth Social media platform. But a deal has proven elusive, and there is no indication that a merger between the two companies will occur anytime soon.
In September, Digital World investors approved a one-year extension for the SPAC to complete the deal with Truth Social. The company has nine months left, otherwise it will have to return the funds it raised from investors when it went public.
The resurgence in Digital World Acquisition has brought it back to its meme-stock glory days. The stock traded above $100 shortly after its SPAC debut in late 2021 and early 2022, but then floundered to as low as $12.40 per share in 2023.
Trump's next election challenge is underway with the New Hampshire primary on Tuesday. The former president is facing former South Carolina Governor Nikki Haley. Recent polls have indicated that Trump is likely to win the state.
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