- Trump’s Media and Technology Group (TMTG) is in advanced negotiations to acquire crypto exchange Bakkt from Intercontinental Exchange (ICE) through an all-stock deal.
- The acquisition would expand Trump’s influence in the crypto market amid rising Bitcoin prices since his election victory.
- Bakkt’s crypto custody business, which operates under a New York regulatory license, is expected to be excluded from the deal.
Donald Trump‘s media company, Trump Media & Technology Group (TMTG), is in advanced negotiations to acquire crypto exchange Bakkt. This potential deal would expand Trump’s presence and influence in the cryptocurrency market.
Background on Trump Media & Technology Group
TMTG operates Truth Social, a social media platform started by Trump after he was banned from Twitter. Despite generating only $26 million in revenue this year, TMTG holds a $6 billion equity valuation. Trump owns a 53% stake in TMTG, representing over half of his estimated $5.7 billion net worth.
Details on Potential Bakkt Acquisition
Bakkt is a cryptocurrency trading platform owned by Intercontinental Exchange (ICE). ICE has a 55% economic interest in Bakkt, which was originally led by Kelly Loeffler, former Republican senator for Georgia.
TMTG plans to use its stock shares to acquire Bakkt in an all-stock deal. This would provide TMTG with an established cryptocurrency business to expand its presence in the crypto market.
The potential deal comes as Bitcoin prices have risen over 30% since Trump’s election victory, amid speculation of favorable cryptocurrency legislation under his administration.
Bakkt’s cryptocurrency custody business would likely be excluded from the acquisition. This division reported $278,000 in operating losses in Q3 2022.
Contrast Between Bakkt and Truth Social
While Truth Social averages 646,000 daily website visits, according to Similarweb, Bakkt could provide TMTG with a larger crypto user base. For comparison, crypto exchange X averages 155 million website visits daily.
Rationale Behind Acquisition
Despite Truth Social’s small reach compared to major social platforms, it remains a key asset for Trump. Expanding into cryptocurrencies through Bakkt could help grow TMTG’s business.
The potential acquisition shows TMTG’s strategy to leverage Trump’s brand and profile to build a presence in the social media and crypto spheres.
