Donald Trump’s Media Group Eyes Bakkt Acquisition to Boost Crypto Ventures
Donald Trump’s social media group in talks to buy crypto trading venue Bakkt. We will be following this closely over the next few months. If true Bakkt could play a big role in the integration of crypto payments into social platforms like X and Truth Social.
As per the Financial Times, Donald Trump’s social media company, Trump Media and Technology Group (TMTG), is reportedly in advanced discussions to acquire crypto trading platform Bakkt in an all-stock deal. This potential acquisition marks a significant step in Trump’s growing involvement in the cryptocurrency sector.
Bakkt’s Market Surge
Post this news, Bakkt, a crypto platform backed by Intercontinental Exchange (ICE), experienced a dramatic 66% surge in its stock price. However, trading was halted due to extreme volatility. Bakkt is known for its innovative services, including institutional crypto trading and consumer-focused digital asset solutions, making it an attractive acquisition target.
Trump’s Crypto Expansion
Trump is expanding his cryptocurrency ventures as he prepares to take office in January 2025. Before the November election, he introduced a token tied to his new crypto project, World Liberty Financial (WLF). Under the WLF deal, Trump and his family will earn 75% of the token’s profits without taking on any liabilities. This aligns with Trump’s increasing focus on cryptocurrency. In addition to operating Truth Social, TMTG’s social media platform, Trump recently launched World Liberty Financial, a crypto venture to reshape the financial space. Acquiring Bakkt could serve as a cornerstone for expanding his influence in the blockchain and crypto industries.
Crypto Impacts
If finalized, the acquisition would consolidate Trump’s position in a recently championed sector, particularly ahead of the U.S. presidential election. By integrating Bakkt’s crypto trading infrastructure with his existing platforms, Trump Media could create a powerful ecosystem that merges social media with digital finance.
With immediate effect, Trump Media’s shares DJT rose by 16%, hitting $32, while Bakkt experienced an extraordinary 162% surge, trading at $29 just before the close. The rapid spike in Bakkt’s stock led to a temporary trading halt, highlighting the market’s intense reaction.
On the flip side, earlier this year, Bakkt faced delisting risks from the New York Stock Exchange as its stock traded below the $1 per share minimum for over 30 consecutive days. To address this, the company executed a 1-for-25 reverse stock split in April, consolidating shares to boost its trading price and maintain its NYSE listing.
Awaiting Official Comments
Neither Trump Media nor Bakkt has responded to inquiries regarding the deal. Intercontinental Exchange, Bakkt’s major backer, has declined to comment. Industry observers are now speculating on the broader implications of this move, including potential regulatory scrutiny and its impact on the cryptocurrency market.
This deal, if confirmed, could mark a significant milestone for both Trump Media and the crypto industry, signaling a deeper integration of blockchain technology into mainstream platforms.
Bakkt is a cryptocurrency platform that provides a range of services including institutional crypto trading and consumer-focused digital asset solutions. It is backed by the Intercontinental Exchange (ICE) and is known for offering a secure and regulated environment for buying, selling, and storing digital assets.
