Marjorie Taylor Greene invested up to $ 50,000 in Trump SPAC before her stock plummeted


Representative Marjorie Taylor Greene, R-Ga., Is seen in the Capitol Visitor Center ahead of a briefing by administration leaders on the US withdrawal from Afghanistan on Tuesday, August 24, 2021. (Photo by Tom Williams / CQ-Roll Call , Inc via Getty Images)

Georgia Representative Marjorie Taylor Greene has bought up to $ 50,000 in shares of a shell company that is merging with former President Donald Trump’s new media company, according to a financial disclosure form.

Greene, a Republican and Trump supporter with a history of conspiracy theories, bought shares of Digital World Acquisition Corp. last Friday as they skyrocketed to mind-blowing levels.

A few days later, the Trump SPAC (Special Purpose Acquisition Company) plunged in value.

The disclosure form, dated Tuesday, indicates that Greene purchased between $ 15,001 and $ 50,000 in stock. The form does not say at what price Greene acquired the shares, but she most likely lost money on the exchange, at least on paper.

The news of the purchase has already been reported by congressrading.com, which tracks the business activity of politicians.

Last week, Trump Media & Technology Group, chaired by the former president, announced that it would launch a new social media platform to “oppose the tyranny of Big Tech.”

The media company has agreed to partner with Digital World Acquisition Corp., a blank check company that exists only to take private companies public through what’s called a PSPC.

Digital World shares quadrupled on the first day of trading after the deal was announced. On Friday, the Trump SPAC climbed to $ 175, a staggering 1,657% above its closing price on Wednesday.

This is the day Greene bought some stock. The Trump SPAC has piqued the interest of traders on WallStreetBets, the Reddit page behind GameStop’s rise to power.

But the rally quickly fizzled out. Digital World fell 11% on Monday, then lost 30% on Tuesday. It is currently trading at around $ 65, down two-thirds from last week’s high.

It is not known how much Greene has lost so far on the Trump SPAC bet.

On the day Greene completed the transaction, Digital World Acquisition Corp. traded in a very wide range between $ 67.96 and $ 175. At best, the investment would be slightly in the red from current trading levels.

Negotiation of shares in Congress

Despite their influence on federal politics, members of Congress are permitted to trade stocks, although they cannot use non-public information for personal gain.

“I don’t think that under a sound ethics policy, members of Congress should be allowed to trade individual stocks – Trump stocks or whatever,” said Norm Eisen, CNN legal analyst and senior researcher in governance studies at the Brookings Institution. . “This is because the nature of their work can influence their investments. “

While trades like Greene’s are allowed, Eisen said they raise thorny ethical issues.

“This opens up questions such as: is she formulating her opposition to the Jan. 6 committee to spruce up the Trump brand and increase its stock value?” Eisen said. ” We should not [have to] ask those kinds of questions.

History of Trump’s bankruptcies

IPO watchers said the spike was highly unusual – especially because little is known about the Trump company.

The latest filings do not indicate how much revenue – if any – the Trump Media & Technology Group is generating. But it’s likely to be minimal as the new social media platform has yet to launch.

PSPC merger announcements normally contain financial projections and details of the planned capital structure. Still, the Trump deal did not include all of this, offering investors a press release that criticized Big Tech and a presentation to investors with no income estimate.

Trump’s companies have filed four bankruptcies, all focused on casinos he owned in Atlantic City.

Trump’s last IPO was in 1995, when Trump Hotels & Casino Resorts went public. The casino company was losing money every year it went public and filed for bankruptcy a decade later.


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