Trump Media Group is on the verge of a deal to acquire the crypto platform Bakkt. This potential acquisition marks TMTG's move to diversify and enter the cryptocurrency market.
TMTG and Bakkt Talks
According to Financial Times, Trump Media and Technology Group (TMTG) is in advanced discussions to acquire the crypto platform Bakkt, owned by Intercontinental Exchange (ICE). The deal is expected to be an all-share transaction and aims to help TMTG enter the burgeoning cryptocurrency market.
Bakkt's Struggles
Founded by ICE in 2018, Bakkt has faced challenges in achieving profitability. Its crypto custody business generated minimal revenues of $328,000 with operating losses of $27,000 in the third quarter of 2023. Additionally, the company narrowly avoided delisting from the New York Stock Exchange.
Potential Impact of the Deal
Acquiring Bakkt could be a strategic move for TMTG, providing access to an infrastructure targeted at institutional investors. This deal could enhance Trump's influence in the crypto industry, supporting other ventures like World Liberty Financial.
If the deal is finalized, it will mark a significant step for TMTG in entering the cryptocurrency market, potentially affecting the company's future development and presence in the industry.
