Trump SNS 'Truth Social' to List on Nasdaq on 26th... Theme Stocks Surge 35%

Former U.S. President Donald Trump's social networking service (SNS) 'Truth Social' will be traded on the New York Stock Exchange on the 26th (local time).

[Image source=Yonhap News]

According to Bloomberg News on the 25th, Truth Social's parent company, 'Trump Media & Technology Group' (TMTG), stated in a securities registration statement submitted to the U.S. Securities and Exchange Commission (SEC) that its shares will be traded on the Nasdaq market under the ticker symbol 'DJT' starting on the 26th. DJT represents the initials of former President Trump.

TMTG is a special purpose acquisition company (SPAC) created for a merger with Digital World Acquisition Corp. (DWAC). DWAC approved the merger with TMTG at its shareholders' meeting on the 22nd. TMTG announced that all legal procedures related to the merger were completed on the same day. The SPAC merger, which allows for a backdoor listing on the stock market, has the advantage of bypassing the complicated initial public offering (IPO) process.

The stock price of DWAC, known as a Trump-themed stock, surged 35% to close at $49.95 on the New York Stock Exchange that day. This is the highest price since $50.56 on the 15th of last month. Truth Social is a deficit company. Since its launch in February 2022, it recorded losses of $73 million (approximately 96 billion KRW) until the first half of last year.

Despite consecutive losses, the background for this stock price increase is analyzed to be the aggressive buying by Trump supporters who make up the majority of DWAC shareholders. Bloomberg News forecasted that with this merger, the approximately 60% stake held by former President Trump is expected to soar to an estimated valuation of about $3 billion (approximately 4 trillion KRW) or more.

Bloomberg reported, "This could be a windfall for former President Trump, who pays millions of dollars every month to resolve various legal issues as the Republican presidential candidate."

Meanwhile, other Trump-themed stocks also closed higher on the same day. The stock prices of conservative content sharing platform Rumble (RUM) and software company Phunware (PHUN), which designed the app for Trump's 2020 campaign, rose by 2% and 5%, respectively.

This content was produced with the assistance of AI translation services.