In a surprising development, the Trump Media and Technology Group (TMTG), the parent company of Truth Social, is reportedly in advanced negotiations to acquire the struggling cryptocurrency trading platform Bakkt. The potential all-stock deal would see TMTG absorb Bakkt, which had a market capitalization of just over $150 million as of Monday.
Trump’s Media Empire Expands into Crypto
Despite minimal revenue, TMTG boasts a $6 billion equity valuation driven by retail investor interest following Trump’s reelection. The acquisition of Bakkt would mark a significant expansion of the former president’s media empire into the world of digital assets.
Bakkt was created by Intercontinental Exchange, owner of major derivatives exchanges and the New York Stock Exchange, with the initial goal of helping Starbucks customers buy coffee with Bitcoin. Former U.S. Senator Kelly Loeffler served as its first CEO. The company eventually launched a digital wallet in 2021 but discontinued it last year to focus on crypto custody and trading services.
Bakkt’s Struggles and Uncertain Future
Bakkt has faced significant challenges, with the company stating in February that it lacked the cash on hand to fund even 12 months of operations. News of the potential acquisition sent Bakkt Holdings Inc (BKKT) shares soaring 160% on Monday.
The talks come on the heels of Trump’s recent promotion of World Liberty Financial, a DeFi platform linked to the Trump family. A deal could impact Bakkt’s future direction and its potential role within Trump’s expanding media empire, including its focus on Bitcoin.
Notably, Bakkt’s crypto custody business, which holds digital assets like Bitcoin and Ether, has struggled and will be excluded from the acquisition. This shift occurs amid a surge in crypto markets following Trump’s victory, with Bitcoin rising more than 30% over the past 30 days.
Trump’s Deepening Crypto Ties
The Wall Street Journal separately reported that President-elect Trump is planning to meet with Coinbase CEO Brian Armstrong, further signaling his growing involvement in the cryptocurrency space. The potential Bakkt acquisition and high-profile meetings with industry leaders suggest that digital assets may play a more prominent role in Trump’s business and political agenda moving forward.
As details of the acquisition continue to emerge, many are speculating about the implications for both TMTG and the broader crypto industry. Some view the move as a potential boost for Bitcoin and other digital currencies, given Trump’s influence and large base of supporters. Others remain cautious, citing regulatory uncertainty and the volatile nature of the crypto markets.
Looking Ahead
The potential acquisition of Bakkt by Trump’s media company marks a significant development in the intersection of politics, media, and cryptocurrency. As the deal progresses and more information comes to light, it will be crucial to monitor how this impacts the future of both TMTG and the wider digital asset landscape.
With Trump’s reelection and growing interest in crypto, the coming months and years may see a shift in how digital currencies are perceived and utilized by mainstream audiences. The Bakkt acquisition, if completed, could be a key catalyst in this process, paving the way for further adoption and integration of cryptocurrencies into traditional financial systems.
