In a surprising development, Donald Trump’s media company is reportedly on the verge of acquiring the struggling cryptocurrency exchange Bakkt. The potential all-stock deal would see Trump Media and Technology Group (TMTG), the parent company of Truth Social, absorb Bakkt as part of its expansion into the rapidly evolving digital asset market.
Trump’s Media Empire Dives into Crypto
According to sources close to the matter, TMTG is in advanced discussions to purchase Bakkt, a crypto trading platform currently owned by Intercontinental Exchange. The proposed acquisition would be an all-stock transaction, with TMTG leveraging its lofty $6 billion equity valuation to absorb Bakkt’s more modest $150 million market capitalization.
The move marks a significant foray by Trump’s media empire into the world of cryptocurrencies and blockchain technology. It comes on the heels of the former president’s recent promotion of World Liberty Financial, a DeFi platform with ties to the Trump family. The Bakkt acquisition would provide TMTG with an established foothold in the crypto trading and custody space, potentially setting the stage for further expansion.
Bakkt’s Rocky Road
Bakkt, which was originally launched by Intercontinental Exchange with the goal of enabling Starbucks customers to buy coffee with Bitcoin, has faced significant challenges in recent years. Despite high-profile partnerships and ambitious plans, the platform has struggled to gain traction in the competitive crypto market.
In 2021, Bakkt introduced a digital wallet, but the product was discontinued just a year later. The company has since pivoted to focus on crypto custody and trading services, but financial woes have persisted. In February, Bakkt admitted that it lacked the cash on hand to fund even 12 months of operations, casting doubt on its long-term viability.
The Fallout of the Deal
News of the potential acquisition sent shockwaves through the markets, with shares of Bakkt Holdings Inc (BKKT) skyrocketing 160% on Monday. However, the deal’s impact on Bakkt’s future direction remains uncertain, particularly regarding its struggling crypto custody business.
Bakkt’s crypto custody service, which holds digital assets like Bitcoin and Ether, has underperformed and will be excluded from the acquisition.
– According to a source familiar with the negotiations
The acquisition talks come amid a surge in crypto markets following Trump’s presidential victory, with Bitcoin rising over 30% in the past 30 days. The potential deal could have significant implications for the future of both TMTG and Bakkt, as well as the broader crypto landscape.
Looking Ahead
As details of the potential acquisition continue to emerge, many questions remain unanswered. Will Bakkt’s technology and expertise be integrated into Truth Social or other TMTG properties? How will the deal impact the platform’s existing partnerships and customer base? And perhaps most importantly, what role will cryptocurrencies and blockchain play in Trump’s evolving media and technology strategy?
Observers will be closely watching for further developments in the coming days and weeks. For now, news of the Bakkt acquisition underscores the increasingly blurred lines between traditional media, technology, and the rapidly mainstreaming world of digital assets. As Trump’s empire expands into the crypto space, the ramifications could be far-reaching and transformative.
In a related development, as Trump prepares to assume the presidency once again, reports indicate that he plans to meet with Coinbase CEO Brian Armstrong in the near future. The meeting suggests that digital assets and blockchain technology may play a more prominent role in the incoming administration’s economic and technological agenda.
With the crypto markets surging and major players like Trump and Coinbase forging new alliances, the stage appears set for a period of rapid growth and mainstream adoption. The Bakkt acquisition, if finalized, could be just the first of many high-profile deals that reshape the landscape of both traditional media and the still-nascent world of cryptocurrencies.
