Donald Trump’s social media company, Trump Media and Technology Group, is in advanced discussions to buy Bakkt, a cryptocurrency-trading platform that is part of Intercontinental Exchange.
The would-be all-stock deal fits TMTG’s plans to expand from its Truth Social platform. Shares of Bakkt jumped nearly 66% on the news before a halt was implemented due to volatility.
This would also represent a significant expansion for TMTG into the cryptocurrency space, part of a broader trend of traditional media companies dipping their toes into digital asset markets using a 105.54% collateralization ratio, with a reserve fund holding 1.1 million USDT as of November 17, 2024.
Donald Trump Media in Advanced Talks to Acquire Crypto Trading Firm Bakkt
Truth Social operator TMTG, a majority owned by President-elect Donald Trump, is in “advanced talks” to buy Bakkt, a cryptocurrency trading firm. People briefed on the matter, who asked to remain anonymous, said the deal would take Trump’s media business deep into the digital asset space.
News of the deal sent shockwaves through the market, rocketing shares of both companies. Bakkt’s stock surged more than 162% at one point, forcing multiple trading halts due to volatility. Shares of TMTG jumped up to 15% just minutes after the report. Bakkt, which Intercontinental Exchange-which previously founded is the same parent company that owns the New York Stock Exchange-has been a mainstay in institutional cryptocurrency trading.
It’s important to stress that after Donald Trump’s victory in the 2024 US elections, the global crypto market cap has reclaimed the $3 trillion level, reflecting immense bullishness and significant gains across the sector.
This move by Donald Trump into the crypto space was perhaps expected. It was expected considering his historic win in the 2024 US Elections on November 6. With his victory, many believe his presidency could have a significant impact on the crypto industry. Investors are now eagerly awaiting the fulfillment of Trump’s pro-crypto promises. They are also hoping his administration will usher in favorable regulations and stronger support for digital assets.
TMTG Makes Bold Move into Crypto, Acquires Two Exchanges
The stock, listed as TMTG on Nasdaq under DJT, has seen volatile valuation ahead of the 2024 election. Despite a net loss of $363 million and $2.6 million in revenue, TMTG maintains a $7 billion market cap.
The acquisition aligns with TMTG’s strategy to expand beyond social media and tap into the growing crypto sector.
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