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The disclosure form, dated Tuesday, indicate Greene purchased between $15,001 and $50,000 worth of shares. The form does not say what price Greene acquired the shares at, but she very likely lost money on the trade, at least on paper.
Last week, Trump Media & Technology Group, chaired by the former president, said it will launch a new social media platform to “stand up to the tyranny of Big Tech.”
Shares of Digital World quadrupled in the first day of trading after the deal was announced. By Friday, the Trump SPAC climbed to as high as $175, a staggering 1,657% above its Wednesday closing price.
But the rally quickly fizzled. Digital World fell 11% on Monday and then lost 30% on Tuesday. It’s currently trading at around $65 — down by two-thirds from last week’s peak.
It’s not clear how much Greene has lost so far on the Trump SPAC bet.
On the day Greene made the trade, Digital World Acquisition Corp. traded in a very wide range between $67.96 and $175. At best, the investment would be in the red slightly compared with current trading levels.
Stock trading in Congress
“I do not believe that as a matter of sound ethics policy, members of Congress should be permitted to trade in individual stocks — Trump stocks or otherwise,” said Norm Eisen, a CNN legal analyst and senior fellow in governance studies at the Brookings Institution. “That’s because the nature of their work can influence their investments.”
“It opens questions like: Is she shaping her opposition to the January 6 committee to burnish the Trump brand and increase the value of her stock?” Eisen said. “We shouldn’t [have to] ask those kinds of questions.”
History of Trump bankruptcies
IPO watchers said the spike was highly unusual — especially because little is known about the Trump venture.
The latest filings do not indicate how much revenue — if any — Trump Media & Technology Group generates. But it’s likely to be minimal because the new social media platform has not launched yet.
SPAC merger announcements normally contain financial projections and details on the planned capital structure. Yet the Trump deal included none of that, offering investors a press release that blasted Big Tech and an investor presentation with no estimates on revenue.