Donald Trump's social media company, Trump Media and Technology Group (TMTG), is reportedly in talks to acquire crypto trading platform Bakkt, a significant step towards integrating crypto payments into social platforms.
Bakkt's Market Surge
Following the news of a potential acquisition, Bakkt, a platform backed by Intercontinental Exchange (ICE), experienced a 66% increase in stock price. However, trading was halted due to high volatility. Bakkt is known for its innovative services, including institutional crypto trading and consumer-focused digital asset solutions.
Trump's Crypto Expansion
Donald Trump is expanding his cryptocurrency ventures as he prepares to take office in January 2025. Before the November election, he introduced a token tied to his new crypto project, World Liberty Financial (WLF). Under the WLF deal, Trump and his family will earn 75% of the token’s profits. Truth Social platform and the recent launch of World Liberty Financial might be complemented by acquiring Bakkt, enhancing Trump's influence in the blockchain and crypto industries.
Crypto Impacts
If finalized, the acquisition would consolidate Trump's position in a recently advocated sector, particularly ahead of the U.S. presidential election. By integrating Bakkt’s crypto trading infrastructure with his existing platforms, Trump Media could create a powerful ecosystem merging social media with digital finance. Trump Media's shares rose by 16%, while Bakkt experienced a 162% surge, prompting a temporary halt in trading due to the market's intense reaction. Earlier, Bakkt faced delisting risks from the NYSE due to low stock prices, leading to a reverse stock split in April.
Both Trump Media and Bakkt have yet to comment on the potential deal. However, industry experts speculate that this move could be a significant milestone in integrating blockchain technology into mainstream platforms.
