Trump Media and Technology Group (TMTG), owned by Donald Trump, is considering the acquisition of the cryptocurrency platform Bakkt, owned by Intercontinental Exchange (ICE).
The Speculated Acquisition
On November 18, reports suggested that TMTG might acquire Bakkt through an all-share deal to enter the rapidly growing cryptocurrency market. Following the announcement, the share price increased by 165% to $29. It is noteworthy that the acquisition does not include Bakkt's crypto custody business.
Platform's Gains and Losses
Bakkt, founded by ICE in 2018, has faced challenges in profitability. In Q3 of the last year, it reported losses of $27,000 with a revenue of $328,000. At the beginning of this year, the firm managed to avoid delisting from the New York Stock Exchange.
Potential Deal Implications
If completed, the deal may strengthen Trump's influence in the industry, aided by his involvement in World Liberty Financial, a stablecoin-backed credit platform. Collaboration with ICE would add strategic value for TMTG. Despite Bakkt's struggles, its connections with ICE and focus on institutional investment will contribute to success. However, neither party has commented on the speculated deal yet.
Finalizing the deal could be a significant step for TMTG in solidifying its presence in the cryptocurrency market and expanding Trump's involvement in the industry.
