Trump media, cryptocurrencies surge as Trump’s chances of victory rise after shooting

Crypto stocks, prison operators and other stocks that could benefit from a Donald Trump presidency in the United States surged in premarket trading Monday, as the Republican candidate’s chances of victory increased after an assassination attempt at a rally.

Investors said trading betting on Trump’s victory would surge this week after he was shot in the ear at a rally in Pennsylvania. The former US president raised his fist moments after the attack and his campaign team said he was fine.

Shares of Trump Media & Technology Group (TMTG) (DJTWW, DJT) have soared 67%. Trump owns a majority stake in the company, which is worth about $3.8 billion as of June 25, according to LSEG data, and is the parent company of social media platform Truth Social.

TMTG shares have jumped 75% this year, driven by retail traders betting on a Trump victory in the Nov. 5 rematch against President Joe Biden, who is a Democrat.

Cryptocurrencies also got a boost, following bitcoin’s jump to its highest level in two weeks after the attack on Trump, who has portrayed himself as a champion of cryptocurrencies. Cryptocurrency exchange Coinbase Global, bitcoin miners Riot Platforms Inc and Marathon Digital added between 6% and 7%.

“Trump is seen as pro-cryptocurrency and the theory that he is now in a strong position in the race for the White House has spurred traders to seek assets that could benefit from his return to power,” said Dan Coatsworth, investment analyst at AJ Bell.

However, “the markets have remained surprisingly calm given the assassination attempt,” Coatsworth said.

The broader U.S. market was weak, with S&P 500 futures up 0.4%.

Gun maker Smith & Wesson Brands gained 2.7%. Shares of gun companies tend to rise after a mass shooting, as calls for gun control have led some people to buy more firearms out of fear of limited availability.

Prison stocks Geo Group and CoreCivic also gained about 7% each. Both companies could benefit from Trump’s presidency, as he has promised to crack down on illegal immigration, which could boost demand for detention centers.

Software developer Phunware, hired by Trump’s 2020 presidential re-election campaign to create a phone app, jumped 50%, while video-sharing platform Rumble, popular with conservatives, added 18%.

(Reporting by Medha Singh in Bangalore; Editing by Devika Syamnath)