Trump Media, owned by President-elect Donald Trump, is reportedly in advanced negotiations to acquire cryptocurrency trading platform Bakkt, the Financial Times reported, citing people familiar with the matter.
The news sent shares of both companies soaring on Monday. Trump Media, which operates the Truth Social platform and trades under the Nasdaq ticker DJT, saw its shares rise over 16% after the report.
Meanwhile, Bakkt, a firm established by Intercontinental Exchange (ICE), the parent company of the New York Stock Exchange, witnessed its stock price skyrocket by 162% amidst volatile trading sessions and multiple halts.
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Bakkt Provides Tech Services for Crypto Investors
Bakkt, founded in 2018 and headquartered in Alpharetta, Georgia, provides tech services for cryptocurrency investors.
While Bakkt reported $328.4 million in revenue in its most recent fiscal quarter, it also noted an operating loss of $27.4 million, albeit an improvement from the prior year.
In its quarterly filings, Bakkt flagged concerns over its ability to remain a “going concern” but expressed confidence in its near-term financial stability.
Despite its potential, the company has faced challenges, including warnings from the New York Stock Exchange about possible delisting earlier this year due to prolonged low stock prices.
In response, Bakkt executed a 1-for-25 reverse stock split in April to stabilize its market position.
BIG NEWS: Donald Trump's social media group in talks to buy crypto trading venue Bakkt.
We will be following this closely over the next few months. If true $Bakkt could play a big role in the integration of crypto payments into social platforms like X and Truth Social. pic.twitter.com/Rhy1sXSYLw
— CRYPTO ENDEVR (@CryptoEndevr) November 18, 2024
The acquisition talks highlight Trump Media’s increasing interest in the cryptocurrency space. The move comes shortly after Trump’s promotion of a crypto venture, World Liberty Financial, just weeks before the 2024 presidential election.
Through this venture, Trump and his family are set to earn 75% of its net coin revenue while assuming no financial liability.
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World Liberty Financial Cuts Fundraising Goal by 90%
Earlier this month, World Liberty Financial reduced its fundraising goal by 90%. Initially aiming to raise $300 million, the firm now plans to target $30 million. It will terminate WLFI sales once that figure is reached.
Since launching in mid-October, World Liberty Financial has reportedly garnered only about $14 million in cryptocurrency, well short of its initial ambitions.
The project saw an initial burst of investor interest, even causing its website to crash on launch day. However, demand has since declined. Some analysts attribute the lukewarm reception to skepticism around the project’s fundamentals.
Galaxy Digital, a financial services firm focused on crypto, noted in a research report that the WLFI token lacks a mechanism to generate value for holders. The firm found that WLFI primarily functions as a governance token for a protocol that has yet to materialize.
Meanwhile, Andreessen Horowitz’s (a16z) crypto division views the re-election of Trump as a pivotal moment for the future of cryptocurrency regulation in the US.
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Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
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