Trump's TMTG On Verge Of Acquiring Crypto Trading Platform Bakkt: A Strategic Move Into The Crypto Market

By Alan Hume | Wednesday, 20 November 2024 08:30 AM
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The Trump Media and Technology Group (TMTG), the organization behind Truth Social, is reportedly on the brink of acquiring the cryptocurrency trading platform Bakkt, according to insiders.

This move is seen as a significant stride in the President-elect's foray into the crypto market, following his endorsement of a new crypto venture by World Liberty Financial.

As reported by The Post Millennial, the deal, which is yet to be finalized, is an all-share purchase of Bakkt, a subsidiary of Intercontinental Exchange (ICE), the parent company of the New York Stock Exchange. The exact valuation of the deal remains undisclosed, but Bakkt's market capitalization was estimated at around $150 million as of Monday.

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The potential acquisition has already stirred the stock market. Following the news, Bakkt shares soared by 162 percent, while TMTG shares experienced a 16.7 percent increase. TMTG, in which Trump holds a 53 percent stake, has become one of the most actively traded stocks since his election, boasting a $6 billion equity valuation.

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However, Bakkt has been grappling with financial instability since its inception. The New York Stock Exchange retains a 55 percent economic interest in the company, which had previously announced plans to wind down its crypto custody business. Insiders have confirmed that this business, which involves holding digital assets like bitcoin on behalf of customers, will not be part of the deal. Instead, Bakkt is said to be focusing on developing a trading platform for institutional investors.

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The company's first chief executive was Kelly Loeffler, a former GOP Senator for Georgia during Trump’s first term, who is currently co-chairing the committee organizing Trump’s inauguration. This acquisition, if successful, will further cement the President-elect's position in the crypto market, a move that has already seen a positive response from crypto markets.

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