Trump Media Group, the company behind Truth Social, is looking to make a move into the world of cryptocurrency by potentially acquiring Bakkt, a crypto trading platform. While the deal is still in the works, it could see Bakkt being absorbed by Trump’s media empire. Despite having little revenue, Trump Media and Technology Group (TMTG) has attracted significant interest from retail investors, leading to a $6 billion equity valuation.
Bakkt, which was initially created by Intercontinental Exchange, had a primary goal of allowing Starbucks customers to purchase coffee using bitcoin. However, the company has since shifted its focus to providing crypto custody and trading services. With a market capitalization of around $150 million, Bakkt has seen its shares soar by 160% following news of the potential acquisition.
It is important to note that Bakkt’s struggling crypto custody business, which involves holding digital assets like bitcoin and ether, will not be included in the acquisition deal. This decision comes at a time when the crypto market is experiencing a surge in value, with bitcoin prices rising by over 30% in the last month alone.
The acquisition talks come on the heels of Trump’s endorsement of World Liberty Financial, a decentralized finance (DeFi) platform associated with the Trump family. This move suggests that Trump’s interest in the crypto space is growing, and the acquisition of Bakkt could further solidify his presence in the industry.
In addition to the Bakkt acquisition, there are reports that President-elect Trump is set to meet with Brian Armstrong, the CEO of Coinbase, one of the largest cryptocurrency exchanges in the world. This meeting could signal further involvement by Trump in the crypto market, potentially opening up new opportunities for his media empire.
Overall, the potential acquisition of Bakkt by Trump Media Group represents a significant step into the cryptocurrency world for the media company. With Bakkt’s focus on crypto trading and custody services, the deal could have far-reaching implications for both companies and the broader crypto market. As Trump continues to expand his presence in the industry, it will be interesting to see how this acquisition shapes the future of both Trump’s media empire and the cryptocurrency space as a whole.
