President-elect Donald Trump’s media company is reportedly in advanced talks to acquire the cryptocurrency trading platform Bakkt through an all-stock deal.
According to reports, this deal would be the Trump Media and Technology Group’s (TMTG) first major expansion after its social media platform, Truth Social.
Following the news, the stock prices of both TMTG and Bakkt surged. Bakkt’s shares skyrocketed by 163%(closed at 29.71 after gaining 18.39), while TMTG’s stock jumped 16% today and closed around $32.78 after gaining 4.68.
If the deal closes, Bakkt’s acquisition could have a huge effect on Trump’s portfolio. His 53% stake in TMTG is at the moment valued at $3.7 billion.
Bakkt, was founded in 2018 by Intercontinental Exchange(ICE), which also owns the New York Stock Exchange, is the major shareholder with a 55% stake and currently holds a market capitalization of approximately $150 million. TMTG, with a valuation of $7 billion after Trump’s election victory, aims to capitalize on its high-value stock to facilitate this potential acquisition.
If the deal is finalized, it would mark Trump’s second venture into the cryptocurrency sector, following the launch of World Liberty Financial (WLF) in September. Despite the initial hype, WLF struggled to gain traction. One key issue was that 75% of the platform’s net protocol revenue, excluding operational liabilities, was allocated to the Trump family– a factor that contributed to its downfall.
Additionally, constant website crashes tarnished the project’s reputation, leading to a disappointing fundraising total of only $15 million, far short of its initial $300 million goal. However, the project did reap some benefits to Polymarket bettors who had wagered on whether Trump would launch these tokens before 2024.
Also Read: Trump to Hold Private Meeting with Coinbase CEO, What’s Cooking?
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