Trump Social Media Firm In Talks To Expand Into Crypto With Bakkt Acquisition
Donald Trumps media venture, the Trump Media and Technology Group (TMTG), is reportedly in advanced negotiations to acquire Bakkt, a crypto trading platform owned by the Intercontinental Exchange (ICE).
Trump Sets Sights On Crypto Expansion
According to sources familiar with the ongoing discussions, TMTG is considering an all-share purchase of Bakkt, although the exact valuation remains unclear. As of Monday, Bakkts market capitalization was just over $150 million.
TMTG, which Trump has pledged to maintain a 53% stake in, has gained considerable attention in the stock market since the former presidents election victory on November 5. Despite reporting only $2.6 million in revenues this year, TMTG boasts an equity valuation of $6 billion, providing it with a robust currency for potential acquisitions.
Following the announcement of the acquisition talks, Bakkts shares jumped 86%, reflecting investors optimism about the potential acquisition. TMTGs share price also rose significantly by around 14%.
TMTG Explores All-Share Purchase Of Bakkt
Founded by ICE, Bakkt was initially designed to facilitate a range of crypto services, including a custody business aimed at holding the industrys leading digital assets, Bitcoin (BTC) and Ethereum (ETH), for clients.
However, this part of the crypto business has struggled, with reported operating losses of $27,000 against revenues of only $328,000 for the third quarter of the year. Consequently, it is expected that TMTGs acquisition will not include Bakkts custody operations, which are likely to be phased out.
In terms of user engagement, Trumps Truth Social remains relatively small, averaging around 646,000 daily visits compared to the 155 million daily visits on Elon Musks X platform.
Still, the president-elects investment in TMTG is significant, accounting for more than half of his estimated $5.7 billion net worth, according to Bloomberg.
Featured image from LA Times, chart from TradingView.com
Text source: NewsBTC
