Cryptocurrency stocks rise on theory that Trump is likely to win after assassination attempt

Cryptocurrency stocks, prison operators and others that could benefit from a Donald Trump presidency in the United States rose in premarket trading on Monday, amid speculation that the Republican candidate’s chances of victory increased after the attempted assassination at a rally in Pennsylvania.

Investors said trading betting on Trump to win will surge this week after he was shot in the ear during a rally in Pennsylvania. The former US president made a fist pump moments after the attack and his campaign said he was doing well.

Trump Media & Technology Group (TMTG) DJT.O shares soared 67%. Trump owns a majority stake in the company, valued at 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 are up 75% this year, boosted by the traders retailers betting on a Trump victory in the November 5 election against Democratic President Joe Biden.

Cryptocurrency stocks also got a boost, following Bitcoin’s jump to a two-week high after the attack on Trump, who has cast himself as a champion of cryptocurrencies. Cryptocurrency exchange Coinbase Global COIN.O, bitcoin miners Riot Platforms Inc RIOT.O and Marathon Digital MARA.O all added between 6% and 7%.

“Trump is widely seen as pro-cryptocurrency and the theory that he is now in a stronger position in the race for the White House has encouraged traders to look for assets that will benefit if he returns to power,” said Dan Coatsworth, investment analyst at AJ Bell.

However, “the markets were surprisingly quiet given the assassination attempt,” Coatsworth said.

The broader U.S. market was subdued, with S&P 500-linked futures EScv1 up 0.4%.

Gunmaker Smith & Wesson Brands SWBI.O gained 2.7%. Gun stocks tend to rise after a mass shooting, as calls for gun control in the past have led some people to buy more firearms out of fear that their availability will be limited.

Prison stocks Geo Group GEO.N and CoreCivic CXW.N also rose about 7 percent each. Both are potential beneficiaries of a Trump presidency as he has promised to crack down on illegal immigration, which could boost demand for detention centers.

Software developer Phunware PHUN.O, hired by Trump’s 2020 presidential re-election campaign to build a phone app, rose 50%, while video-sharing platform Rumble RUM.O, popular among conservatives, added 18%.

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