Trump Media is in advanced discussions to acquire the cryptocurrency trading company Bakkt, according to Financial Times.
Deal Negotiations
According to a Financial Times report, Trump Media is in advanced talks to purchase the crypto company Bakkt. Bakkt was created by Intercontinental Exchange, the owner of the New York Stock Exchange. The financial terms of the deal remain undisclosed.
Impact on Stocks
The news of the potential deal sent both companies’ stock prices soaring. Trump Media, which owns the Truth Social platform and is majority-owned by President Donald Trump, surged by 15% within minutes of the report. Bakkt’s shares jumped over 162%, leading to multiple trading halts due to excessive volatility.
Financial Overview and Future
Despite reporting a $363 million net loss on revenues of just $2.6 million this year, Trump Media boasts a market capitalization exceeding $7 billion. Bakkt, on the other hand, yet to achieve widespread adoption. The potential acquisition by Trump Media could draw considerable attention, despite the company’s ongoing financial challenges, including intense competition and regulatory scrutiny of Truth Social.
The ongoing discussions between Trump Media and Bakkt highlight Trump's intentions to deepen his involvement in the crypto sector. This news emphasizes the intricate financial conditions surrounding Trump Media.
