""SPAC Stock"" – Google News
Rep. Larry Bucshon, R-Ind., Leaves the House of Representatives Republican Conference session at the Capitol Hill Club on Wednesday, May 16, 2018.
Bill Clark | CQ-Roll Call, Inc. | Getty Images
Republican MP Larry Bucshon has bought up to $ 15,000 in SPAC, which is set to make public former President Donald Trump’s proposed social media platform.
The Indiana congressman bought a stake in Digital World Acquisition Corp. on October 25th. (DWAC), according to a publication published on Monday. The investment is worth at least $ 1,001 but not more than $ 15,000.
Bucshon’s investment is the second announced DWAC purchase by a member of Congress. CNBC reported last week that MP Marjorie Taylor Greene invested up to $ 50,000 in the SPAC. It also appears to be the first stock transaction Bucshon has disclosed since 2013, according to Quiver Quantitative, an alternative data company that tracks the trading activities of Congress members.
Bucshon, who served as a doctor and surgeon, has been a member of Congress since 2011. He is a member of the House of Representatives’s Energy and Trade Committee.
In January, after pro-Trump rioters attacked the Capitol, Bucshon said in a statement that Trump started the uprising. “I cannot tolerate dangerous rhetoric from the president,” he said. Soon after, however, Bucshon voted against impeachment proceedings against Trump for inciting the Capitol invasion.
DWAC is a special-purpose acquisition company that would merge with Trump Media & Technology Group, a new social media company that Trump said he planned to take on “big tech censorship.”
A spokesman for Bucshon’s office did not immediately respond to CNBC’s request for comment.
The stock has more than quintupled in extremely strong trading in the past week and a half since the target company was announced. There have been signs that retail investors active on social media platforms like WallStreetBets were fueling the astronomical rally.
After a wild two-day increase of 800% following the announcement, the SPAC pulled back nearly 70% from its all-time high of $ 175, trading at $ 56.20 apiece.
SPACs raise capital on an IPO and use the money to merge with a private company and get it public, typically within two years. Early investors in these blank check deals usually have no idea how the business combination would end.
At least two hedge funds that were among DWAC’s early investors – Lighthouse Investment Partners and Saba Capital Management – sold their sizable stakes last week after learning of SPAC’s merger target.
Trump’s plans for a social media app come months after he was banned from Twitter and Facebook for instigating the deadly January 6th Capitol Uprising through his supporters.
Former US President Donald Trump announced plans on October 20 to launch his own social networking platform called “TRUTH Social”, which is expected to begin with the beta version for “invited guests” next month.
Chris Delmas | AFP | Getty Images
The former president said he’s rolling out a social media app called Truth Social. He said the new company will also introduce an on-demand video streaming service “that will compete with the increasingly ‘lively’ and politicized ‘entertainment’ programming being created by big tech and big media players” , and sees “opportunities to create ‘demolition-proof’ ‘alternatives in other key areas ranging from web services to payment processing.”