The Trump Media and Technology Group (TMTG) is said to be close to purchasing cryptocurrency exchange Bakkt at a time when the prices of Bitcoin and other crypto assets are high following the second presidential term for President-elect Trump, the majority owner of the social media platform.
Citing two sources, the Financial Times reported Monday that TMTG, which operates Truth Social (a clone of X/twitter), is finalizing an all-share purchase of Bakkt, albeit details of the deal remain unclear.
No comments Yet From Either Party
On Tuesday, Bakkt disclosed that it has noted “the rumors that appeared in the financial press regarding a potential transaction involving the company,” and that it “does not comment on market rumors or speculation.”
The purchase of Bakkt by TMTG would assist in consolidating Donald Trump’s role in an industry he championed in the run-up to the U.S. presidential election.
Reuters sought comment, but Trump Media did not reply immediately, and Intercontinental Exchange, Bakkt’s parent company and owner of the New York Stock Exchange, also declined to comment.
It remains to be seen when Trump Media will formally carry out the acquisition of Bakkt and if the crypto trading site will be rolled into the social media company.
Kelly Loeffler, former CEO of Bakkt, is co-chair of the committee for Trump’s presidential inauguration. The president-elect is also involved in a new crypto venture known as World Liberty Financial.
According to Nasdaq, Trump Media and Technology Group shares closed at 17% on news of the possible Bakkt acquisition. Bakkt shares also increased strongly at more than 160%, while trading was interrupted multiple times due to volatility.
Positive news about the potential Bakkt acquisition coincides with a challenging time for Trump Media, who reported an operating loss of $27.4 million, an improvement from the $52.9 million loss reported in the same quarter last year. Bakkt was founded in 2018. On the whole, the Georgia-based company’s stock has declined 46.71% so far this year.
Crypto Prices Increasing Since The US Election Outcome
Trump has been strongly linked to the world of cryptocurrencies over the past few months and campaigned in favor of digital currencies. Since he was re-elected early this month, crypto prices have soared as investors anticipate less regulatory scrutiny and broader acceptance of digital currencies.
In March, Bakkt received a notice from the New York Stock Exchange that its shares were at risk of delisting as they traded below the $1 share minimum necessary for the index. This prompted the company to conduct a reverse stock split on a 1-for-25 basis to lift the share price in April.
The recent performance of the TMTG’s DJT stocks has been encouraging. As indicated by the chart below from TipRanks, despite ongoing volatility, the company’s share price has risen 47.39% over the past three months.
DJT rose 2.9% at $31.36 when trading commenced this Friday. It traded above $50 just before the U.S. election after declining to $12 in September. The stock has experienced relative stability since the start of this month, hovering around $30.
In other news, a report by the New York Times indicates that the TMTG is also aiming to launch a cryptocurrency payment service, according to a trademark application filed this week, in yet another signal of the president-elect’s endorsement of the cryptocurrency industry.
The TMTG filed an application on Monday for a service known as TruthFi, which is described as a platform for crypto payments, financial custody services, and trading in digital assets.
The application did not have sufficient details about the project’s operational modus or any likely launch date. As of early Friday, the TMTG has yet to comply with a request for further information.
