Shares of Trump Media & Technology Group (DJT) closed more than 16% higher on Monday after a Financial Times report said the company, which operates social network Truth Social, is in advanced talks to acquire crypto exchange Bakkt (BKKT). to take over.
Bakkt shares rose more than 162% on Monday after the report. The company is majority owned by NYSE parent company Intercontinental Exchange (ICE).
President-elect Donald Trump has about a 60% stake in DJT, which has a market capitalization of about $7.1 billion. Trump reiterated earlier this month that he has no plans to sell his shares in the company.
Trump’s election victory has pushed bitcoin prices to record highs, with the government generally seen as friendlier to the alternative asset class.
In July, Trump attended a Bitcoin conference in Nashville and has since promised to introduce more supportive regulations. His promises also include appointing a presidential advisory council on cryptocurrency and firing current SEC Chairman Gary Gensler.
On Monday, bitcoin (BTC-USD) rose more than 2% to trade just below $92,000 per token.
Other crypto-adjacent names also moved higher.
Shares of MicroStrategy (MSTR), which owns nearly 280,000 bitcoins, closed nearly 13% higher after it announced the purchase of an additional 51,780 bitcoins for $4.6 billion. The company now owns $16.5 billion worth of bitcoin.
Shares of Coinbase (COIN) also rose more than 6% on Monday, with the Wall Street Journal reporting that its CEO, Brian Armstrong, would meet with Trump.
Bakkt, which has a market cap of about $190 million, has seen its shares fall sharply since going public in 2021. Intercontinental Exchange, the majority shareholder, is led by CEO Jeff Sprecher, who is married to former Georgia Senator Kelly Loeffler, co-chairman of Trump’s inaugural committee.
Trump founded Truth Social after being kicked off major social media apps like Facebook (META) and Twitter, now X, following the Capitol riots of January 6, 2021. Trump has since been reinstated on those platforms. He officially returned to his post at X in mid-August, after a hiatus of about a year.
While Truth Social looks to take on social media incumbents, the company’s fundamentals have long been in question.
On November 5, just a few hours before the polls closed, DJT downgraded its third-quarter results, showing a net loss of $19.25 million for the quarter ended September 30. DJT also reported revenue of $1.01 million. At the end of the quarter, the company had approximately $370 million in cash on hand.
The stock is up 10% in the past month.
Alexandra Canal is a senior reporter at Yahoo Finance. Follow her on X @allie_canal, LinkedIn, and email her at alexandra.canal@yahoofinance.com.
