Trump Media Discusses Acquisition of Cryptocurrency Platform Bakkt
Date: 2024-11-19 Author: Gabriel Deangelo Categories: BUSINESS
U.S. President-elect Donald Trump’s Trump Media is in the final stages of talks to acquire cryptocurrency trading platform Bakkt. The news has sent shares of both companies soaring, according to people familiar with the matter.
Shares of Trump Media, which owns the social media site Truth Social and trades on the Nasdaq under the ticker DJT, rose more than 16% following the announcement. Meanwhile, shares of Bakkt, founded by New York Stock Exchange owner Intercontinental Exchange (ICE), jumped 162% amid volatility and trading halts.
Bakkt was founded in 2018 to provide technology solutions to cryptocurrency investors. However, the company is facing financial difficulties: its latest financial report showed revenue of $328.4 million and an operating loss of $27.4 million, although this is a 48% improvement from last year. Bakkt has also warned that it could face delisting if its shares continue to trade below the minimum level of $1. In April, the company conducted a 1-for-25 reverse stock split to avoid delisting.
Trump Media, whose market cap exceeds $7 billion, is looking to expand its assets in the cryptocurrency space. Despite a net loss of $363 million on revenue of just $2.6 million for the year, the company has almost $673 million in its accounts. A few weeks before the presidential election, Trump introduced the World Liberty Financial project, within the framework of which the Trump family will receive 75% of the profits from the issuance of a new token without taking on any financial risk.
Trump Media’s interest in Bakkt may be linked to the influence of Kelly Loeffler, Bakkt’s former CEO and co-chair of Trump’s inaugural committee. Loeffler left the company in 2019 to run for a U.S. senator from Georgia, but lost the 2021 election.
The acquisition reflects Trump’s plans to deepen his presence in the cryptocurrency space as he returns to the White House in January 2025. However, questions remain about Bakkt’s long-term stability, especially given its financial situation and stock market volatility.
