Trump Media & Technology Group is in talks to acquire crypto platform Bakkt

November 19, 2024 - Donald Trump’s social media company, Trump Media and Technology Group (TMTG), is reportedly in advanced negotiations to acquire Bakkt, a cryptocurrency trading platform backed by the New York Stock Exchange’s parent company, Intercontinental Exchange (ICE).

The potential all-stock deal could expand TMTG’s operations beyond its social media platform, Truth Social, and into the burgeoning cryptocurrency sector.

The Financial Times, citing sources close to the matter, revealed that discussions are underway as TMTG looks to leverage its $6.63 billion valuation to broaden its business portfolio.

Bakkt’s current market capitalization stands at $470 million. Following news of the talks, Bakkt shares skyrocketed by 17% on November 19. Meanwhile, Trump Media & Technology Group Corp (NASDAQ: DJT) or TMTG shares dip 6.68%.

Strategic Expansion into Crypto

The acquisition marks Trump’s deepening involvement in the cryptocurrency industry.

His new venture, World Liberty Financial, is already gaining traction and has sparked speculation of potential favorable legislation under his incoming administration.

Bitcoin prices have risen over 30% since Trump’s election victory, fueled by optimism in the crypto sector.

If finalized, the deal would exclude Bakkt’s crypto custody business, which has struggled for profitability and is likely to wind down.

Instead, TMTG is expected to focus on Bakkt’s plans to build a trading platform tailored for institutional investors.

Bakkt’s Challenges and Opportunities

Bakkt has faced hurdles since its inception, including operating losses and a near delisting from the NYSE.

However, a recent reverse stock split and increased market activity have improved its position. The platform aims to strengthen its offerings in the institutional trading space under TMTG’s ownership.

Implications for TMTG and Trump’s Wealth

Truth Social, TMTG’s primary platform, has seen limited reach with an average of 646,000 daily visits, a fraction of competitors like Elon Musk’s X (formerly Twitter).

Nonetheless, Trump’s stake in TMTG constitutes a significant portion of his $5.7 billion fortune, as estimated by Bloomberg.

Neither TMTG nor ICE has commented on the reports, with Bakkt declining to address "market rumors or speculation." The acquisition, if confirmed, could position TMTG as a major player in both the media and cryptocurrency sectors.