Representative Marjorie Taylor Green (R-Ge) holds a press conference outside the US Capitol after a private visit to the Holocaust Museum, to express regret over previous remarks about the Jewish people, in Washington, US, June 14, 2021.
Evelyn Hochstein | Reuters
Representative Marjorie Taylor Green has invested up to $50,000 in SPAC shares linked to the social media platform planned by former President Donald Trump.
According to a public disclosure, Greene has bought a stake in Digital World Acquisition Corp. , or DWAC, on Friday. The stake is worth at least $15,000 but not more than $50,000.
Based on DWAC’s price fluctuations since October 22, Greene is almost certain to lose money on the investment. On Friday, DWAC opened at $118.80 per share and fell to $67.96 per share. It is now trading around $54.50 per share.
A representative for Green, a Republican from Georgia, did not immediately respond to CNBC’s request for comment.
DWAC, a special purpose acquisition company, said last week that it would merge with Trump’s planned new social media company, Trump Media and Technology Group.
This led to a buying frenzy among retail investors in DWAC shares over two days last week, sending the stock up more than 800%. SPAC was at one point the most traded name on the Fidelity platform, and DWAC was among the most mentioned names in Reddit’s WallStreetBets chat room.
Shares are down nearly 40% this week, but the stock is still trading above $50 a share, five times higher than SPAC’s IPO price of $10.
SPACs are a special type of company that does not have commercial operations.
Instead, they raise money aggressively through an initial public offering and eventually merge with a smaller company that meets the goals of the SPAC prospectus. Also known as “blank check” companies, Wall Street SPACs have grown in recent years as a way for both private equity firms and the general public to invest in young companies.
On Tuesday, Trump issued a statement about a new social media app he plans to roll out as well as a video-on-demand streaming service.
“To counter Big Tech’s censorship, we are creating a ‘Big Tent’: Truth Social platform,” Trump said. This is what our country is supposed to be about.”
Trump’s plans for the social media app come months after he was banned by Twitter and Facebook for inciting his supporters to the deadly January 6 riots.
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