According to two persons with knowledge of the discussions, the Financial Times said Monday that Trump Media is in “advanced talks” to purchase the bitcoin trading company Bakkt.
Minutes after the FT article was out, Trump Media, which is mostly controlled by President-elect Donald Trump, surged by double digits.
The business, which trades as DJT on the Nasdaq and runs the Truth Social app, finished more than sixteen percent higher.
In the midst of frequent trading halts brought on by volatility, shares of Bakkt, which was founded by Intercontinental Exchange, the owner of the New York Stock Exchange, surged more than 162%. Former Bakkt CEO Kelly Loeffler is co-chairing Trump’s inaugural committee.
When Georgia Governor Brian Kemp appointed Loeffler to the U.S. Senate seat left empty by Sen. Johnny Isakson, who resigned for health concerns, Loeffler—who is married to Intercontinental Exchange CEO Jeffrey Sprecher—abandoned her position as Bakkt’s senior executive in 2019.
In a runoff for a special Senate election, Democratic Senator Raphael Warnock beat Loeffler.
As individual investors wager on the Republican’s momentum and electoral chances in the lead-up to the 2024 presidential election, Trump Media’s market value has fluctuated by billions of dollars.
Trump Media has a market valuation of almost $7 billion, while reporting a $363 million net loss on revenues of only $2.6 million so far this year.
CNBC’s request for comment was not immediately answered by a Trump Media spokesperson.
