Key Takeaways:
- Trump Media and Technology Group (TMTG) is in advanced talks to acquire cryptocurrency platform Bakkt in an all-stock deal.
- Bakkt’s crypto custody business will be excluded from the acquisition, despite the platform’s struggles with sustainability.
- The deal would deepen Trump’s involvement in crypto and align with a broader market rally, including Bitcoin’s 30% rise this past month.
Trump Media and Technology Group (TMTG), the parent company of Truth Social, is reportedly finalizing an all-stock deal to acquire Bakkt, a struggling cryptocurrency platform, according to the Financial Times.
TMTG, valued at $6 billion despite minimal revenue, aims to integrate Bakkt into its portfolio.
Meanwhile, Bakkt, originally launched by Intercontinental Exchange (ICE) for bitcoin payments, has faced significant challenges, recently pivoting to crypto custody and trading services after discontinuing its digital wallet.
Bakkt, with a market capitalization of $150 million, has struggled financially, admitting earlier this year that it lacked sufficient funds to sustain operations for another year.
Notably, its crypto custody business will not be part of the acquisition.
Despite these issues, Bakkt’s stock surged 160% on Monday following the news.
This acquisition deepens Donald Trump’s involvement in the crypto industry, following his recent promotion of World Liberty Financial, a DeFi platform linked to his family.
JUST IN: 🇺🇸 President-elect Donald Trump's $DJT in advanced talks to purchase crypto trading platform Bakkt.
— Watcher.Guru (@WatcherGuru) November 18, 2024
The deal comes amid a cryptocurrency market rally spurred by Trump’s political resurgence, with Bitcoin up over 30% in the last month.
The move suggests a potential strategic pivot for TMTG and could influence Bakkt’s trajectory under its new ownership.
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