Donald Trump’s media company, Trump Media and Technology Group (TMTG), is reportedly in advanced talks to acquire cryptocurrency platform Bakkt. If the deal goes through, it could pave the way for integrating crypto payments into platforms like Truth Social and Elon Musk’s X.
What’s driving this bold decision? And how could it change the future of crypto and social media? Here’s everything you need to know.
According to the Financial Times, TMTG is exploring an all-stock acquisition of Bakkt, a crypto trading platform backed by Intercontinental Exchange (ICE). This potential purchase signals a major step for Trump in expanding his influence in the blockchain and crypto sectors.
The news sparked a frenzy in the market. Bakkt’s stock skyrocketed by 66%, triggering a trading halt due to high volatility. Bakkt is well-regarded for its services, including institutional crypto trading and consumer-focused digital asset tools, making it an attractive addition to TMTG’s portfolio.
Trump has been ramping up his presence in the crypto space. Earlier this year, he launched World Liberty Financial (WLF), a token-driven project set to provide the Trump family with 75% of its profits without assuming liabilities.
Acquiring Bakkt could solidify TMTG’s role in the cryptocurrency ecosystem, combining Bakkt’s advanced trading infrastructure with Truth Social’s reach. This integration could position Trump Media as a leader in merging social media and digital finance.
The market responded swiftly to the potential deal. TMTG’s shares (DJT) jumped by 16%, reaching $32, while Bakkt’s stock soared 162% to $29 before trading was halted. The dramatic price swings reflect the high stakes and investor excitement surrounding this possible acquisition.
Although Bakkt’s market reaction was positive, the company has faced challenges. Earlier in 2024, Bakkt risked delisting from the New York Stock Exchange (NYSE) after its shares remained below $1 for over 30 days. In April, Bakkt addressed this by implementing a 1-for-25 reverse stock split to boost its trading price and maintain its NYSE listing.
Neither TMTG nor Bakkt has commented on the potential deal, and ICE, Bakkt’s primary backer, has also remained silent. Industry experts are now speculating on how this acquisition could face regulatory scrutiny and what it could mean for the broader crypto market.
Bakkt is a cryptocurrency platform that provides a range of services including institutional crypto trading and consumer-focused digital asset solutions. It is backed by the Intercontinental Exchange (ICE) and is known for offering a secure and regulated environment for buying, selling, and storing digital assets.
The fusion of crypto trading with social platforms could turn this deal into a game-changer for both industries.
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