President-elect Donald Trump’s media company, Trump Media & Technology Group (TMTG), is in advanced negotiations to acquire cryptocurrency platform Bakkt in an all-stock deal, according to sources cited by the Financial Times. Bakkt, which struggled to achieve profitability since its public debut in 2021, saw its stock price surge by more than 162% on news of the potential acquisition.

Previously led by former U.S. Senator Kelly Loeffler of Georgia, Bakkt has faced challenges in its crypto custody division, posting losses of $27,000 on revenues of $328,000 in its most recent quarter. The crypto custody division, according to sources, will likely be excluded from the deal as TMTG focuses on Bakkt’s core trading operations.

The acquisition would represent a strategic move for Trump, who embraced cryptocurrency during his campaign, positioning himself as the pro-crypto candidate. Market expectations of regulatory easing under a Trump administration have bolstered Bitcoin and crypto-related stocks since his election victory.

TMTG, which owns the Truth Social platform, has experienced volatility in its stock performance, reflecting its struggles to rival larger social media platforms. Like Bakkt, TMTG has faced profitability challenges, posting a $19 million net loss for the last quarter. Despite these hurdles, Trump’s vision for innovation and expansion into the crypto sector may revitalize both companies.

Kelly Loeffler, who previously served as Bakkt’s CEO and later joined Trump’s inaugural committee, has been a vocal supporter of the president-elect. Her leadership experience at the Intercontinental Exchange, which owns a majority stake in Bakkt, may influence the deal’s trajectory.

This acquisition could mark a pivotal moment for both TMTG and Bakkt, signaling Trump’s intent to reshape the crypto landscape and align it with his broader goals of economic growth and innovation.