Trump Media and Technology Group (TMTG), the parent company of Truth Social, is reportedly in advanced discussions to acquire the cryptocurrency trading platform Bakkt, according to a report by the Financial Times.
Details of the Acquisition
- Valuation: The all-stock deal would see TMTG acquire Bakkt, valued at just over $150 million, despite TMTG’s own impressive $6 billion equity valuation, largely driven by retail investor enthusiasm following Donald Trump’s re-election.
- Bakkt’s Evolution: Initially launched by Intercontinental Exchange to facilitate everyday bitcoin transactions, Bakkt has since pivoted to crypto custody and trading services. However, it has faced financial difficulties, announcing in February it lacked the cash flow to sustain operations for 12 months.
Shares of Bakkt Holdings Inc. (BKKT) surged by 160% on Monday following news of the potential acquisition.
Strategic Implications
The deal aligns with Trump’s ongoing interest in cryptocurrency, further highlighted by his recent promotion of World Liberty Financial, a DeFi platform linked to the Trump family. The acquisition of Bakkt could:
- Expand TMTG’s Empire: Integrating crypto services may diversify TMTG’s portfolio, potentially embedding bitcoin and other digital assets into the Trump media ecosystem.
- Exclude Crypto Custody: Notably, Bakkt’s crypto custody division, which has struggled, will not be part of the deal, signaling a streamlined focus on trading and other services.
Broader Market Impact
This move comes amidst a crypto market rally, fueled by Trump’s victory and a pro-crypto policy stance:
- Bitcoin Surge: Bitcoin is up 30% in the last 30 days, reinforcing optimism in the digital asset market.
- Coinbase Connection: Separately, The Wall Street Journal reported plans for President-elect Trump to meet with Coinbase CEO Brian Armstrong, signaling further engagement with major players in the crypto space.
Future Outlook
If the acquisition proceeds, TMTG could redefine Bakkt’s role within the crypto industry, potentially leveraging its user base and media influence to amplify bitcoin adoption and trading activity.
