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Trump Media and Technology Group, the company behind Truth Social, is making headlines with reports of a new venture into the crypto space. The group is said to be nearing an all-stock deal to acquire Bakkt, a cryptocurrency trading platform owned by Intercontinental Exchange. As Bakkt struggles to find its footing, this potential acquisition could mark a significant step for Trump Media in expanding its reach into the digital finance world. In this article, we’ll explore what this deal could mean for both companies and the broader crypto industry.
TMTG Eyes Bold Move into Crypto with Bakkt Acquisition
Trump Media and Technology Group (TMTG), the company behind Truth Social, is making waves with reports of advanced talks to acquire Bakkt, a cryptocurrency trading platform. According to the Financial Times, this potential deal would be an all-stock arrangement, with TMTG taking over Bakkt, which currently has a market value of just over $150 million.
What’s interesting is that TMTG itself isn’t generating much revenue but still holds an impressive $6 billion equity valuation. This has been largely fueled by strong support from retail investors, especially following Trump’s re-election.
As for Bakkt, it has an intriguing backstory. It was launched by Intercontinental Exchange, the same company behind major derivatives exchanges and the NYSE, with the vision of helping Starbucks customers pay for coffee using bitcoin (BTC). Now, with TMTG possibly stepping in, the platform might be looking at a whole new direction.
Bakkt’s Journey and the Trump Connection
Kelly Loeffler, who later became a U.S. Senator, was Bakkt’s first CEO. The company introduced a digital wallet in 2021, but it was discontinued last year as Bakkt shifted its focus to crypto custody and trading services. Earlier this year, the company revealed financial struggles, admitting it didn’t have enough cash to operate for another 12 months.
On a brighter note, Bakkt’s shares (BKKT) soared by an impressive 160% on Monday after news of a potential acquisition by Trump Media surfaced.
This news comes on the heels of Trump’s recent endorsement of World Liberty Financial, a DeFi platform linked to his family. If the acquisition moves forward, it could give Bakkt a new direction, potentially aligning it with Trump’s growing media empire and its reported interest in bitcoin.
Interestingly, Bakkt’s crypto custody business, which manages assets like bitcoin and ether, won’t be part of the deal. The acquisition is happening at a time when the crypto market is booming—bitcoin has climbed over 30% in the past month, adding extra excitement to the story.