A few weeks before Digital World Acquisition announced a deal to merge with a fledgling social media company backed by former President Donald J. Trump, it was at the center of a sudden trading frenzy, The New York Times reports.
The SPAC began allowing the trading of warrants before Trump’s name was mentioned. About 350,000 warrants of Digital World traded in the first two days. But on the third day — Oct. 4, a week after Digital World and Trump Media & Technology Group entered into formal talks that were not disclosed at the time — trading in the warrants exploded. More than 2.5 million changed hands that day.
The surge was unusual, especially for a little-known SPAC that hadn’t publicly identified a merger target, experts said. Read more.
