Today, Phunware’s (PHUN) price is markedly gaining momentum since yesterday by almost 38%. Now in the pre-market trading session is soaring 26% to the price of $4.1300. If you’re wondering why prices soared so quickly, it’s because former President Donald Trump’s new social media venture, which he oversees, announced ambitions to raise $1 billion. As a result, the company is selling shares to hedge funds and family offices at a price that is several times higher than what Digital World Acquisition Corp received in October. If the deal described through a merger with Digital World Acquisition is completed, the Trump Media & Technology Group, which is constructing a social media app, would already raise $293 million.
The purchase price of Trump Media was $875 million with all debts. Trump Media is now attempting to fund up to $1 billion at a valuation of around $3 billion. This would indicate the surge in Digital World Acquisition after Trump supporters and day traders purchased stock in the company. In conclusion, it is assumed that Phunware will participate in developing a technology platform related to Trump Media & Technology Group. Although, Phunware has not exactly confirmed whether it will participate in this project.