In a surprising turn of events, Trump Media and Technology Group (TMTG), the parent company of Truth Social, is reportedly in advanced talks to acquire struggling crypto trading platform Bakkt. The potential stock-only deal would see TMTG absorb Bakkt, whose market cap stood at just over $150 million on Monday.
The Unlikely Alliance
Despite minimal revenues, TMTG boasts a stock valuation of $6 billion, fueled by retail investor interest following Trump’s re-election. On the other hand, Bakkt, founded by Intercontinental Exchange with the initial goal of helping Starbucks customers buy coffee with Bitcoin (BTC), has been struggling financially. In February, Bakkt stated it did not have enough cash on hand to fund even 12 months of operations.
The acquisition talks come on the heels of Trump’s recent promotion of World Liberty Financial, a DeFi platform linked to the Trump family.
– According to a close source
The deal could impact Bakkt’s future direction and potential role within Trump’s expanding media empire, including its focus on Bitcoin. However, Bakkt’s crypto custody business, which holds digital assets like Bitcoin and ether, has faced difficulties and will be excluded from the acquisition.
Trump’s Growing Crypto Interest
The move comes at a time of surging crypto markets following Trump’s victory, with Bitcoin growing by over 30% in the last 30 days. In another note, the Wall Street Journal reported that President-elect Trump plans to meet with Coinbase CEO Brian Armstrong, further signaling his growing involvement in the crypto space.
Market Reaction and Implications
Following the release of the report, Bakkt Holdings Inc (BKKT) shares saw a 160% surge on Monday. The potential acquisition has sparked speculation about the future of both companies and the broader implications for the crypto industry.
- Will the acquisition provide a lifeline for Bakkt and a new avenue for growth?
- How will Trump’s media empire leverage Bakkt’s technology and expertise?
- What impact will Trump’s growing interest in crypto have on the market and regulatory landscape?
As the story continues to unfold, industry experts and investors alike will be closely watching to see how this unlikely alliance plays out. The merger of a conservative media company and a crypto trading platform may seem an odd pairing, but it could be a strategic move in the rapidly evolving world of digital assets and media.
With Trump’s re-election and growing influence, his involvement in the crypto space could have far-reaching consequences. As the saying goes, “politics makes strange bedfellows,” and in this case, it seems that crypto and conservative media are the latest unlikely pair to share the sheets.
