Trump Media Group in Advanced Talks to Acquire Crypto Exchange Bakkt in All-Stock Deal
Trump Media and Technology Group (TMTG), the company behind Truth Social, is nearing an all-stock acquisition of the crypto trading platform Bakkt, according to Financial Times.
The deal, which would see TMTG absorb Bakkt, is valued at around $150 million, based on Bakkt’s current market capitalization. Despite TMTG’s minimal revenue, the company boasts a $6 billion equity valuation, largely driven by investor interest following Donald Trump’s political influence.
Founded by Intercontinental Exchange (ICE), the parent company of the New York Stock Exchange, Bakkt was originally created to enable Bitcoin payments for Starbucks. Over time, it shifted focus to digital asset custody and trading, although its financial situation remains strained. In a recent disclosure, Bakkt stated it did not have enough capital to sustain operations for more than a year.
Following news of the possible deal, Bakkt’s shares surged by 160% on Monday.
The acquisition is seen as part of Trump’s broader push into the crypto and media sectors, following his promotion of World Liberty Financial, a decentralized finance (DeFi) platform connected to the Trump family. The deal could alter Bakkt’s strategy and future involvement in Trump’s expanding portfolio, particularly in Bitcoin-related services.
However, Bakkt’s crypto custody services, which store assets like Bitcoin and Ether, are expected to be excluded from the deal due to ongoing struggles in this division. This move comes amid a rally in the crypto markets, with Bitcoin experiencing a 30% increase over the past month.
Additionally, reports suggest that President-elect Trump is planning a meeting with Coinbase CEO Brian Armstrong, signaling further interest in the cryptocurrency space.
