Trump Media is reportedly in “advanced talks” to buy the cryptocurrency trading firm Bakkt, the Financial Times reported Monday, citing two people with knowledge of the talks.
The news sent shares of both companies soaring.
Trump Media, which is majority-owned by President-elect Donald Trump, shot up by double digits minutes after the FT report was published.
The company, which operates the Truth Social app and trades on the Nasdaq as DJT, closed more than 16% higher.
Shares of Bakkt — which was created by Intercontinental Exchange, the owner of the New York Stock Exchange — skyrocketed more than 162% amid repeated trading halts due to volatility.
Kelly Loeffler, a previous CEO of Bakkt, is the co-chair of Trump’s inauguration committee.
Loeffler, who is married to Intercontinental Exchange CEO Jeffrey Sprecher, left as Bakkt’s top executive in 2019 when Georgia Gov. Brian Kemp appointed her to the U.S. Senate seat vacated by Sen. Johnny Isakson, who resigned due to health reasons.
Loeffler was defeated by Democratic Sen. Raphael Warnock in a runoff for a special election for her Senate seat.
Trump Media has seen its market value rise and fall by billions of dollars in the run-up to the 2024 presidential election, as retail investors bet on the Republican’s momentum and political prospects.
While Trump Media has reported a $363 million net loss on revenues of just $2.6 million so far this year, it boasts a market cap above $7 billion.
A Trump Media spokeswoman did not immediately respond to CNBC’s request for comment.