TMTG, Donald Trump’s Company, in Advanced Talks to Acquire Crypto Exchange Bakkt
TMTG, the Trump Media and Technology Group, which owns the Truth Social platform, is in advanced discussions to acquire Bakkt, a cryptocurrency trading platform owned by Intercontinental Exchange (ICE). This move marks a strategic shift for the group, aiming to expand its influence beyond social media and enter the booming digital asset sector.
TMTG, with a market valuation of $6 billion despite modest revenues of $2.6 million this year, is considering an acquisition through a stock exchange. Bakkt, on the other hand, has a market capitalization just over $150 million but has struggled to achieve profitability since its launch.
Donald Trump’s Increased Interest in Cryptocurrencies
Donald Trump’s interest in cryptocurrencies is not new. The former president recently supported a crypto project led by his partners at World Liberty Financial, signaling a growing appetite for this domain. Investors anticipate crypto-friendly policies under his future administration, resulting in over a 30% surge in Bitcoin’s price since the announcement of his electoral victory.
Bakkt, founded by ICE, remains a prominent player with a prestigious legacy despite persistent financial challenges. It initially garnered hope for services such as cryptocurrency custody on behalf of third parties, although this activity has been subpar, recording operating losses of $27,000 for revenues of only $328,000 in the third quarter.
Restructuring Needed for Bakkt
The acquisition discussions do not involve Bakkt’s cryptocurrency custody branch, which is expected to be shut down, according to sources familiar with the matter. This decision highlights TMTG’s focus on the most promising segments of Bakkt’s business, particularly the development of a trading platform for institutional investors. Bakkt recently avoided delisting from the New York Stock Exchange through a reverse stock split (1 for 25), although its stock remains fragile.
Implications for TMTG and the Crypto Industry: Trump Meets Coinbase CEO
If this acquisition materializes, it would strengthen Trump’s TMTG position in the crypto world at a critical moment as financial markets shift towards more integrated digital assets. The deal would provide the company with much-needed diversification, especially given the limitations of Truth Social, which remains a modest player with only 646,000 daily visits compared to Elon Musk’s X Network’s 155 million.
This acquisition could also solidify Donald Trump’s fortune, as his stake in TMTG represents over half of his estimated $5.7 billion wealth, according to Bloomberg. It would also allow Trump to fully integrate into the crypto ecosystem since expressing his support.
President-elect Donald Trump will meet privately with Coinbase CEO, Brian Armstrong, on Monday to discuss staffing his second administration, according to sources from the WSJ. The discussions are expected to center around personnel appointments. The meeting between Trump and Armstrong would be the first since Election Day and comes as Trump continues to fill out his cabinet and other key positions of responsibility.
A Forward-Looking Vision
As Trump prepares for his new presidency, this deal underscores his desire to capitalize on the growing potential of digital assets. With the support of influential allies like Kelly Loeffler, co-chair of his inaugural committee and former Bakkt executive, TMTG could turn this gamble into a long-term winning strategy. Acquiring Bakkt would not only be a diversification but also a strong signal of a proactive approach towards innovation and economic integration of financial technologies.
