Trump Media and Technology Group (TMTG), the parent company of Truth Social, is in advanced discussions to acquire the cryptocurrency trading platform Bakkt, signaling an expansion into the digital asset market. The deal comes amid a surge in crypto markets following Donald Trump’s re-election as U.S. President, with Bitcoin up over 30% in the last month.
A Strategic Move Into Cryptocurrency
According to a Financial Times report, the potential all-stock acquisition would integrate Bakkt into TMTG’s expanding operations. Despite TMTG’s limited revenue streams, the company holds a $6 billion equity valuation, driven largely by retail investor enthusiasm tied to Trump’s victory. Bakkt’s current market capitalization, meanwhile, stands just over $150 million. Shares of Bakkt Holdings Inc. (BKKT) soared by 160% on Monday following news of the potential deal.
This acquisition builds on Trump’s growing involvement in cryptocurrency, including his recent promotion of World Liberty Financial, a DeFi platform linked to the Trump family.
Bakkt’s Origins and Challenges
Bakkt, originally launched by Intercontinental Exchange (ICE)—the operator of the New York Stock Exchange (NYSE)—began with an ambitious goal: enabling Starbucks customers to purchase coffee with Bitcoin. Despite early promise, Bakkt shifted its focus to crypto custody and trading services after discontinuing its digital wallet in 2021.
However, the company has struggled financially. In February, Bakkt revealed it lacked the cash reserves to sustain operations for another 12 months. Its crypto custody business, which stores digital assets like Bitcoin and Ether, has faced challenges and will be excluded from the TMTG acquisition.
Trump’s Crypto Ambitions
The Bakkt deal marks another step in Donald Trump’s deepening foray into cryptocurrency. Following his campaign promises to embrace crypto-friendly policies, Trump has positioned his media empire to align with digital assets.
A successful acquisition could redefine Bakkt’s role within Trump’s media ecosystem, potentially enhancing its focus on Bitcoin-related services. Speculation suggests Bakkt could play a part in Trump’s promise to establish a strategic Bitcoin reserve, leveraging its expertise in digital trading.
Crypto Markets React
The news of TMTG’s interest in Bakkt comes as crypto markets surge. Bitcoin has climbed over 30% in the last month, reaching highs above $91,500, while Bakkt’s stock closed at $29.71 on Monday—a 160% increase. The broader crypto rally reflects optimism around Trump’s pro-crypto agenda, including his plans to reduce regulatory scrutiny and promote blockchain innovation.
What Lies Ahead for Bakkt and TMTG
The acquisition aligns with TMTG’s strategy to expand into burgeoning markets, but it also raises questions about Bakkt’s future direction under Trump’s leadership. Excluding Bakkt’s crypto custody business suggests a focus on trading and Bitcoin-related services, with the potential to play a significant role in Trump’s broader crypto ambitions.
With Trump’s renewed political influence and the cryptocurrency sector’s rapid growth, the TMTG-Bakkt deal could mark a turning point for both the company and the wider crypto industry.
