There was no denying that Trump took Iowa by storm. The battle for second place between Ron DeSantis and Nikki Haley turned downright acrimonious at times, and Trump’s arrival at an official event sent Vivek Ramaswamy and Asa Hutchinson packing. Meanwhile, the Trump SPAC, Digital World Acquisition Corp (NASDAQ:DWAC), jumped another 13% in Wednesday afternoon’s trading thanks to the Iowa effect and the loss of a financing source.
While certainly, the utter slam-dunk of a win in Iowa sent the SPAC spiking, the recent word about the loss of a PIPE helped as well. A PIPE is a Private Investment in Public Equity, and its loss might have given shareholders a little extra hope. Reports noted that the PIPE investors didn’t want to cancel one of the conditions of closing, so the deal’s shutdown meant a $530.5 million loss in financing. Digital World had been trying to ditch its PIPEs for some time and now can put its attention into getting different sources of funding. One such method is convertible notes, which Digital World figures can raise $50 million by using those.
Can the Streak Continue?
With the New Hampshire primary just six days away, perhaps the better question is, can the streak keep going? We know that Digital World has already gained on successes in Iowa, but will it also gain with successes in New Hampshire? New Hampshire is looking good for Trump. Some polls put Trump ahead by 16 points over his nearest competitor, Nikki Haley, currently holding around half of the state’s Republican primary vote support. With a large portion undecided, it’s a good time for Trump to work the market and fire up the base once more. Will lightning strike twice, or more, on the SPAC accordingly? Only time will tell.
Is Digital World Acquisition Corp a Good Investment?
Turning to Wall Street, a look at the last five days in trading for DWAC stock shows that it was mostly flat until about yesterday, when it began trending upward and stayed that way through most of today. It’s off its highs for the day, but having gained a hefty 39.07% over the course of those five days suggests at least some degree of investor confidence therein.
