On Monday, shares of Donald Trump’s social media firm rose following news that it is in negotiations to acquire crypto trading company Bakkt.

According to a report from the Financial Times, Trump Media and Technology Group, which runs Truth Social, is nearing an all-stock deal to purchase Bakkt, as confirmed by two sources familiar with the discussions.

Bakkt’s shares, which have backing from the Intercontinental Exchange, the owner of the NYSE, surged by over 160% and were temporarily halted multiple times due to trading volatility. Trump Media’s shares saw a rise of 16.7% by the close of trading.

Despite facing financial challenges, Trump Media reported a significant third-quarter net loss of $19 million and only $1 million in revenue earlier this month. Nonetheless, it boasts a market capitalization exceeding $7 billion, largely due to favorable stock performance. As of September 30, the company had close to $673 million in cash, cash equivalents, and short-term investments.

“Trump Media has shown a knack for selling overpriced stock,” commented Jay Ritter, a finance professor at the University of Florida. “Now, they have substantial cash reserves to invest in a business that they hope will produce revenue and profit.”

Both Trump Media and Bakkt, whose previous CEO Kelly Loeffler is now co-chairing Trump’s inauguration committee and is married to Intercontinental Exchange CEO Jeffrey Sprecher, have not provided immediate comments to YSL News. The Intercontinental Exchange also declined to comment.

If finalized, this acquisition would strengthen Trump’s presence in an industry he has actively promoted leading up to the U.S. presidential elections. The incoming president has also introduced a new cryptocurrency initiative called World Liberty Financial.

“The only advantage Trump Media possesses is the name of the new president,” noted Jim Angel, a finance professor at Georgetown University in Washington, D.C. “The crypto audience has actively supported the president and are now anticipating returns on their investments.”

Matthew Tuttle, CEO of Tuttle Capital Management, cautioned that while the crypto market is quite competitive, there appears to be positive sentiment regarding the potential deal involving Trump Media.