President-elect Donald Trump continues to expand his involvement in the cryptocurrency space, with reports suggesting that his media company, Trump Media & Technology Group (TMTG), is in advanced talks to acquire crypto trading platform Bakkt.
This move signals Trump’s growing commitment to digital assets, which he had previously emphasized during his campaign.
According to a Financial Times report, TMTG, which operates the Truth Social app, is nearing an all-share acquisition deal with Bakkt, although the financial terms and valuation remain unclear. Bakkt, which went public in October 2021, has struggled with profitability but has maintained a market capitalization of about $401 million as of Monday. In response to the news, shares of Bakkt surged more than 160%, while TMTG’s stock rose nearly 17%.
This acquisition talk adds to Trump’s ongoing efforts to strengthen his ties with the cryptocurrency sector. In September, Trump launched World Liberty Financial (WLF), a cryptocurrency project where he stands to benefit significantly. Trump’s political and business commitments to digital assets have also been a prominent feature of his platform, including pledges related to Bitcoin and crypto regulation.
While Trump had previously expressed skepticism toward cryptocurrencies, he has since embraced the sector, even suggesting the creation of a Bitcoin reserve and calling for a new regulatory framework. His growing focus on digital assets also aligns with the surge in crypto prices, with Bitcoin rising by nearly 119% this year.
In a separate development, Trump is set to meet with Coinbase CEO Brian Armstrong on Monday. This meeting is significant as it marks the first time the two will meet since the election, and it may indicate Trump’s future plans for crypto regulation. Armstrong has publicly supported Trump’s appointment of Hester Peirce, a key figure in the SEC, and expressed interest in crypto-friendly policies under a Trump administration.
Founded in 2018 by the Intercontinental Exchange (ICE), the owner of the New York Stock Exchange, Bakkt has faced challenges in achieving profitability. Despite this, it has made strides in developing a crypto custody business and aims to focus on a trading platform for institutional investors. However, Bakkt has been at risk of delisting from the NYSE due to its low stock price, prompting the company to implement a reverse stock split earlier this year.
A potential acquisition by TMTG could offer Bakkt a new opportunity for growth, especially under the increasing influence of Trump’s administration and its favorable stance on cryptocurrency.
Trump’s media group’s reported acquisition of Bakkt is the latest chapter in his evolving relationship with the cryptocurrency industry.
With input from the Financial Times, CNBC, and Investor’s Business Daily.
