Investors piled back into stocks tied to former President Donald Trump after Elon Musk abandoned his planned purchase of Twitter, Bloomberg reports.
Shares of Digital World Acquisition soared as much as 26% to $30.90 on Monday. Warrants tied to the SPAC spiked as much as 60%.
The rally came after Musk said he was pulling the plug on his agreement to buy Twitter, a move that would ease some investor fears that a Musk-run operation could spell the end of Trump’s Truth Social. Devin Nunes, CEO of Trump Media & Technology Group, which owns Truth Social, told Fox Business in April that Twitter wasn’t seen as a threat to the company’s ambitions.
TMTH and Digital World, meanwhile, are both the focus of federal investigations, a key focus of which is whether the SPAC and Trump’s company were in communication about a deal before the SPAC went public. Read more.
