Trump Media Group Nears All-Stock Deal to Acquire Crypto Exchange Bakkt
Trump Media and Technology Group (TMTG), the parent company behind Truth Social, is in advanced talks to acquire the crypto exchange Bakkt in an all-stock deal, according to a Financial Times report.
The transaction would allow TMTG to take over Bakkt, which has a current market capitalization of just over $150 million. Despite TMTG’s modest revenue, its valuation is significantly higher at $6 billion, driven by strong retail investor interest following Donald Trump’s political developments.
Bakkt, initially created by the Intercontinental Exchange (ICE) to enable Bitcoin transactions at Starbucks, has since pivoted to focus on crypto custody and trading services. Its initial plans included offering a digital wallet, but the company has faced significant financial challenges. In February, Bakkt acknowledged it lacked sufficient cash to maintain operations for more than a year.
Following the news of the potential acquisition, shares of Bakkt Holdings Inc. (BKKT) spiked by 160% on Monday.
This acquisition comes after Trump’s recent endorsement of World Liberty Financial, a decentralized finance (DeFi) platform linked to his family. If the deal goes through, it could reshape Bakkt’s future role, potentially integrating it into Trump’s growing media and crypto ventures.
However, Bakkt’s crypto custody business, which manages assets like Bitcoin and Ether, is expected to be excluded from the deal due to ongoing struggles in this area. This acquisition is also occurring amid a positive shift in the broader crypto market, with Bitcoin climbing over 30% in the past month.
In related news, The Wall Street Journal reports that Trump is scheduled to meet with Coinbase CEO Brian Armstrong, suggesting a broader focus on crypto in Trump’s future plans.
