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Shares in Donald Trump’s social media company soared on Monday after a Financial Times report that it was in talks to buy a cryptocurrency exchange.
Trump Media and Technology Group, which operates Truth Social, was up more than 16.5 percent at the close of trading after the newspaper reported it was in advanced talks to buy crypto platform Bakkt.
Many in the crypto sector are expecting the US president-elect to enact reforms that will benefit the industry once he is in office.
The purchase, if it goes through, would give Trump further personal exposure to any favorable regulations his administration enacts.
Bakkt shares shot up more than 160 percent after the financial daily’s report, which cited anonymous sources familiar with the matter.
Bakkt’s parent company, Intercontinental Exchange (ICE), did not immediately respond to a request for comment.
Bakkt has previously entered into business partnerships with Starbucks and Mastercard in moves intended to make cryptocurrencies more accessible to consumers.
The company, which went public in 2021, has not yet turned a profit although its losses have narrowed in recent years.
TMTG posted revenue of just $2.6 million in the first three quarters of this year, while reporting a loss of $363 million.
Trump has a 53 percent stake in the company.
He also has ties to crypto platform World Liberty Financial.
Groups affiliated with the crypto industry spent millions supporting candidates across both US political parties in the November election, including Trump.
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