Trump Media and Technology Group, the company behind Truth Social, is making headlines with reports of a new venture in the cryptocurrency space. The group is said to be nearing a fully stock-based deal to acquire Bakkt, a cryptocurrency trading platform owned by Intercontinental Exchange.
As Bakkt struggles to find its footing, this potential acquisition deal could mark an important step for Trump Media in expanding its reach into the digital financial world. In this article, we will explore what this agreement could mean for both companies and the cryptocurrency industry as a whole.
TMTG Aims for a Bold Move into Cryptocurrency with the Acquisition of Bakkt
Trump Media and Technology Group (TMTG), the company behind Truth Social, is making waves with reports of advanced negotiations to acquire Bakkt, a cryptocurrency trading platform. According to the Financial Times, this potential deal would be entirely stock-based, with TMTG taking over Bakkt, which currently has a market value of just over $150 million.
Interestingly, TMTG itself does not generate much revenue but still maintains an impressive stock valuation of $6 billion. This is largely driven by strong support from retail investors, especially following Trump’s re-election.
For Bakkt, it has an intriguing story. It was launched by Intercontinental Exchange, the same company behind major derivatives exchanges and the NYSE, with the vision of enabling Starbucks customers to pay for coffee with bitcoin (BTC). Now, with TMTG potentially coming on board, the platform may be heading in a completely new direction.
The Journey of Bakkt and Its Connection to Trump
Kelly Loeffler, who later became a U.S. Senator, was the first CEO of Bakkt. The company introduced a digital wallet in 2021 but stopped offering it last year as Bakkt shifted its focus to cryptocurrency custody and trading services. Earlier this year, the company revealed financial difficulties, admitting it did not have enough cash to operate for another 12 months.
In a more positive turn, Bakkt's (BKKT) stock soared by 160% on Monday following news of the potential acquisition by Trump Media.
This news comes right after Trump recently confirmed World Liberty Financial, a DeFi platform associated with his family. If the acquisition goes through, it could provide Bakkt with a new direction, potentially linking it to Trump's growing media empire and their reported interest in bitcoin.
Interestingly, Bakkt's cryptocurrency custody operations, managing assets such as bitcoin and ether, will not be included in the deal. The acquisition is happening at a time when the cryptocurrency market is booming—bitcoin has risen over 30% in the past month, adding to the excitement of the story.
