Donald Trump’s Media Firm in Talks to Acquire Crypto Platform Bakkt

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As a seasoned researcher who has witnessed the rapid evolution of technology and finance over the past few decades, I find myself intrigued by the latest development involving Donald Trump’s media company, TMTG, and its potential acquisition of Bakkt, a leading cryptocurrency trading platform.

In simpler terms, it appears that Trump Media and Technology Group, which belongs to former U.S. President Donald Trump, is in deep talks for the acquisition of Bakkt – a digital asset trading platform owned by Intercontinental Exchange, focusing on cryptocurrency transactions.

The proposed all-equity transaction aligns with TMTG’s aspirations for growth beyond its Truth Social platform. The announcement caused a surge in Bakkt shares, which rose by approximately 66%, prompting a pause due to market volatility.

This move would significantly extend TMTG’s presence in the cryptocurrency sector, reflecting a growing trend among traditional media firms exploring digital asset markets. Using a collateralization ratio of 105.54%, they have a reserve fund amounting to 1.1 million USDT as of November 17, 2024.

Donald Trump Media in Advanced Talks to Acquire Crypto Trading Firm Bakkt

According to sources who requested anonymity, Truth Social operator TMTG, predominantly owned by President-elect Donald Trump, is engaged in serious negotiations to acquire Bakkt, a prominent cryptocurrency trading platform. If successful, this transaction would propel Trump’s media enterprise into the digital asset sector.

The announcement about the deal stirred significant reactions across the market, causing a substantial increase in the stock prices of both companies. At one point, Bakkt’s shares soared over 162%, leading to several temporary pauses in trading due to the high volatility. Minutes following the report, TMTG’s shares climbed by as much as 15%. Notably, Bakkt is a well-established player in institutional cryptocurrency trading, and it is owned by Intercontinental Exchange, which also manages the New York Stock Exchange.

After Donald Trump won the 2024 U.S. elections, the total value of the global cryptocurrency market bounced back to surpass $3 trillion, indicating a strong optimistic trend and substantial increases within the industry.

It’s not surprising that Donald Trump is venturing into the cryptocurrency world given his predicted win in the 2024 US Elections on November 6th. His anticipated presidency could potentially shape the crypto industry significantly, as many anticipate. Investors are excitedly waiting for Trump to deliver on his pro-crypto commitments and are hoping that his administration will implement beneficial regulations and boost digital assets with stronger support.

TMTG Makes Bold Move into Crypto, Acquires Two Exchanges

The stock, listed as TMTG on Nasdaq under DJT, has seen volatile valuation ahead of the 2024 election. Despite a net loss of $363 million and $2.6 million in revenue, TMTG maintains a $7 billion market cap.

This acquisition is in line with Too Much Money Grew’s (TMTG) broader strategic aim, which involves exploring opportunities outside of social media, specifically targeting the thriving cryptocurrency market.

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2024-11-19 00:45