Digital World Acquisition Corporation (DWAC), a special purpose acquisition company, meant to enable former US President Donald Trump's new media company to go public via merger, lost over 20% at its lowest point on Tuesday. The plunge followed Trump's statement on his plans for a new social media outlet Trump Media & Technology Group.
Phunware advertising software firm that was behind Trump's 2020 election campaign also saw a nearly 34% drop after the company announced it would sell up to 5.6 million additional shares "at the market offering."
Both companies experienced enormous growth the previous week when Trump announced the launch of his media company. DWAC was up 800% at its peak.
