Trump Social Media Firm In Talks To Expand Into Crypto With Bakkt Acquisition

Trump Social Media Firm In Talks To Expand Into Crypto With Bakkt Acquisition

Donald Trump’s media venture, the Trump Media and Technology Group (TMTG), is reportedly in advanced negotiations to acquire Bakkt, a crypto trading platform owned by the Intercontinental Exchange (ICE). 

Trump Sets Sights On Crypto Expansion

According to sources familiar with the ongoing discussions, TMTG is considering an all-share purchase of Bakkt, although the exact valuation remains unclear. As of Monday, Bakkt’s market capitalization was just over $150 million.

TMTG, which Trump has pledged to maintain a 53% stake in, has gained considerable attention in the stock market since the former president’s election victory on November 5. Despite reporting only $2.6 million in revenues this year, TMTG boasts an equity valuation of $6 billion, providing it with a robust currency for potential acquisitions.

Following the announcement of the acquisition talks, Bakkt’s shares jumped 86%, reflecting investors’ optimism about the potential acquisition. TMTG’s share price also rose significantly by around 14%. 

TMTG Explores All-Share Purchase Of Bakkt 

Founded by ICE, Bakkt was initially designed to facilitate a range of crypto services, including a custody business aimed at holding the industry’s leading digital assets, Bitcoin (BTC) and Ethereum (ETH), for clients. 

However, this part of the crypto business has struggled, with reported operating losses of $27,000 against revenues of only $328,000 for the third quarter of the year. Consequently, it is expected that TMTG’s acquisition will not include Bakkt’s custody operations, which are likely to be phased out.

In terms of user engagement, Trump’s Truth Social remains relatively small, averaging around 646,000 daily visits compared to the 155 million daily visits on Elon Musk’s X platform. 

Still, the president-elect’s investment in TMTG is significant, accounting for more than half of his estimated $5.7 billion net worth, according to Bloomberg.

Featured image from LA Times, chart from TradingView.com

About Post Author

admin

Please enter CoinGecko Free Api Key to get this plugin works.
wymiana szybki xiaomi bydgoszcz Katalog firm Baza przychodni weterynaryjnych Katalog stron PEKSI WP web site Katalog stron Osuszanie Wodzisław Śląski Internetowy sklep zoologiczny