Donald Trump’s social media launch has raised $ 1bn from anonymous investors as the company progresses with publicity plans through Spac mergers.
Trump Media and Technology Group said on Saturday that it had raised $ 1bn in the private sector (Pipe), but did not name anyone who traded money.
In October, the former US President announced the establishment of Truth Social, a social networking site with no existing software that seeks to register via Spac plus New York. The move comes as Trump is still banned from Twitter, Facebook and YouTube following the January 6 attacks on the US Capitol, as well as the volatile Spac market has stabilized in recent months.
“$ 1 billion sends an important message to Big Tech that political scrutiny and discrimination should end,” Trump said.
“As our support page grows, TMTG will be stronger in the fight against Big Tech violence,” he added.
The launch of TMTG, with Trump and his chair, combined with a blank check company Digital World Acquisition Corp run by Patrick Orlando. Spac raised $ 293m when it recorded at the Nasdaq exchange in September and eleven hedge funds, including Saba Capital and DE Shaw, led by prominent Democratic Party donors, participated in the donations, according to the index.
The Pipe revenue of this contract exceeds the revenue that Spac IPO earns and is like a stock exchange. The exchange price is set at a 20 percent discount on the mid-day trading price of Spac before December 1, which sets the exchange rate at around $ 35. Digital World has sold up to $ 94 per share with the hedge fund group made millions when it was first written on the Nasdaq exchange.
Digital World shares have risen more than $ 10 per share in anticipation of Trump media business. Pipe funds are often advertised along with business mergers. However, because Digital World is waiting to raise corporate revenue, it has been able to seize the opportunity to sell Pipe shares at a price far higher than $ 10 per unit price.
The price of Pipe could increase or decrease depending on how Digital World sells and the revenue generated between Spac and Pipe is expected to contribute $ 1.25bn to TMTG after revenue. Spac shareholders will have the opportunity to repay their money before the contract is terminated if they apply.
TMTG’s Truth Social platform currently has no program or business plan but describes itself as allowing for discussion “without discrimination on the basis of political opinion”.
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