Benessere Capital Acquisition Corp (NASDAQ: BENE) is a Special Purpose Acquisition Company (SPAC) that floated in January this year with the sole aim of finding a merger target to bring to the market. Since floating, BENE stock has been trading sideways with no updates on any potential merger targets.
However, last week the SPAC market gained a huge momentum boost after Trump Media (TMTG) announced their intentions to merge with Digital World Acquisition (DWAC). The TMTG merger is expected to fund the launch of Trump’s social media endeavour “TRUTH social”.
To say DWAC stock skyrocketed is an understatement, with the stock reaching a 52 week high of $175 a share. In SPAC terms, this is completely unheard of as the stock was balancing around $10 for three full quarters. However, DWAC is not the only stock that is seeing a huge surge in investor interest.
BENE stock heavily backed after DACW deal
Here’s where it gets interesting. The DWAC merger momentum has had a clear flow on effect to related companies including Benessere Capital Acquisition (BENE). Patrick Orlando is currently CEO of both DWAC and BENE and investors speculate further Trump endeavours could possibly be funded by BENE. BENE stock is expected to open 50% higher at Monday’s market open. In addition, pre-market suggests further support for other SPAC stocks including Digital World Acquisition (DAWC) and Yunhong International (ZGYH). BENE stock is also currently trending on social media including on Reddit’s WallstreetBets and on Twitter.
The Trump factor is at play across the SPAC market
As we discussed in our previous article, Donald Trump has had a significant impact on the stock market over the past few decades. Cascading a net worth of over $2.5 Billion, the former President seems to have revived what was a dead SPAC market. Prior to Trump Media & Technology Group (TMTG) inking the agreement with DAWC, majority of the SPAC market entered a slump with little investor interest. Even recently SPAC merger propositions such as Virgin Orbit and Polestar received an underwhelming amount of investor sentiment.
However, the Trump factor is somewhat localised to companies run by or associated with Patrick Orlando. It is clear speculators are piecing Orlando’s Trump connection to possible future endeavours.
However, TMTG’s endeavour to disrupt the technology game in the Silicon Valley is a hard feat. Especially comparing market capitalisation sizes with Twitter and Facebook. Furthermore, future plans to develop a streaming service that will stream “non-woke” channels will also require significant capital to compete with the likes of Netflix especially after the recent success of their Netflix original “Squid Games”. Nevertheless, some investors are speculating the social media platform to be a success while others are purely speculating on price movement.
The Bottom Line – BENE stock skyrockets after DWAC merger
Overall, the support behind BENE stock is speculative in nature as the company is yet to announce a merger target. Benessere Capital completed their initial public offering in January with an offering of 10,000,000 units at $10.00 per unit. The first task for the SPAC is to find a suitable acquisition candidate. Once this is achieved the funds raised at IPO will be used to further advance its merged companies endeavours. At this stage, the Patrick Orlando connection to BENE stock remains speculative as no further notice has been given on Benessere finding an acquisition target.
The information above is strictly for informational purposes only and is not financial advice nor does it constitute a recommendation. Youth Investment Group has no liability for personal financial interests or investment decisions. You should make your own investment decisions based upon your own research and what you believe is best for you.
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