Trump expands "cryptocurrency business landscape," plans to acquire cryptocurrency exchange Bakkt
The social media company under Trump is in acquisition talks with the cryptocurrency trading platform Bakkt, planning to fully acquire Bakkt, with Trump promising to retain his 53% stake.
Author: Bitpush News
As preparations are underway for Donald Trump's return to the White House in January 2025, he continues to expand his influence in the cryptocurrency sector.
According to the Financial Times, Trump's social media company, Trump Media & Technology Group, is in advanced talks to acquire the cryptocurrency trading platform Bakkt.
According to two people familiar with the negotiations, Trump Media will fully acquire Bakkt, with Trump promising to retain 53% of the shares; the valuation and financial terms have not been disclosed.
The news caused the stock prices of both companies to soar.
Trump Media, which is majority-owned by Trump (NASDAQ: DJT), surged double digits just minutes after the report was published. The company, which operates the Truth Social app, closed up over 16%. Bakkt experienced multiple trading halts due to high volatility, closing up over 163%.
Mediocre Performance, Once on the Brink of Delisting
Bakkt was launched by the Intercontinental Exchange (ICE) in 2018 and went public in October 2021, primarily providing technology services for cryptocurrency investors. Before going public via SPAC, Bakkt raised hundreds of millions from investors including Boston Consulting Group, Galaxy Digital, ICE, and Microsoft's M12 venture fund, but has struggled to turn a profit. Its latest quarterly report stated total revenue of $328.4 million, with an operating loss of $27.4 million, a 48% reduction in losses compared to the same period last year.
Trump's relationship with Bakkt is notable; former Bakkt CEO Kelly Loeffler was co-chair of Trump's inauguration committee.
Loeffler's husband is Jeffrey Sprecher, CEO of the Intercontinental Exchange. In 2019, Georgia Governor Brian Kemp appointed Loeffler to replace Senator Johnny Isakson, who resigned for health reasons. Loeffler subsequently stepped down from her executive role at Bakkt. However, she was defeated by Democratic Senator Raphael Warnock in the runoff election for the Senate seat.
Bakkt had previously indicated that its cryptocurrency custody business might be shut down, which had received regulatory approval from New York authorities. Sources familiar with the TMTG negotiations stated that this business would not be included in the deal. For the three months ending September 30, the custody business reported an operating loss of $27,000 and revenue of $328,000.
Due to sluggish stock prices, Bakkt faced the risk of delisting from the New York Stock Exchange until it conducted a 1-for-25 reverse stock split in April. Last week, its stock price rose by 15%.
Expanding Business Landscape, Stock Performance Outweighs Fundamentals?
The Trump family's foray into the cryptocurrency market is accelerating. Their cryptocurrency project, World Liberty Financial, launched in September, along with several promises related to digital assets made during the campaign (such as establishing a Bitcoin reserve, creating a mining-friendly environment, and replacing the SEC chairman), demonstrate Trump's strong interest in the cryptocurrency industry.
This interest is directly reflected in the market. As Trump wins the election, retail investors' expectations for the Republican Party, along with optimistic expectations for favorable cryptocurrency policies from a Trump administration, have caused significant fluctuations in the stock price of TMTG, the parent company of the social media platform Truth Social, with billions of dollars in volatility leading up to the election. However, TMTG's revenue this year is only $2.6 million, with a net loss of $363 million, yet its equity valuation exceeds $7 billion.
The user base of Truth Social is also relatively small; according to Similarweb, the average daily visits to the Truth Social website this month were 646,000, while Elon Musk's X platform had daily visits of 155 million.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Dow Jones fall as big tech see sell off pressure on Trump’s comments
Share link:In this post: Major stock indices in the US fell on Monday on negative investor sentiment. This followed President Trump’s failure to predict if his tariff policies would lead to a recession. The tech-heavy Nasdaq was weighed by losses in the big techs
Recession risks rise for all 3 North American economies over Trump-US tariff chaos
Share link:In this post: North America’s recession risks rise as Trump’s unpredictable tariff policies create economic uncertainty across the US, Canada, and Mexico. Wall Street tumbles, economists warn of worsening inflation, and the Bank of Canada considers a rate cut amid trade policy chaos. Ontario retaliates with a 25% electricity surcharge on US states, escalating tensions as Trump dismisses economic concerns.

Why XRP Is Poised to Replace the ‘Dying’ SWIFT System

Bitcoin Gold Card in the US? Crypto Insider Floats Proposal
Trending news
MoreCrypto prices
More








