Trump’s Social Media Group Eyes Bakkt Acquisition: What It Means for the $DJT
The trading world has been buzzing with news of Donald Trump’s latest move into the crypto market. In a significant development, Trump Media and Technology Group ($DJT, which owns Truth Social, is reportedly in advanced talks to acquire the crypto trading platform Bakkt. This potential deal could further cement Trump’s involvement in the cryptocurrency sector, which he has been vocal about supporting. For traders and investors, this news brings fresh questions about the implications for $DJT stock and the broader financial landscape.
What Happened?
According to the Financial Times, Trump’s media company is close to finalizing an all-stock acquisition of Bakkt, a cryptocurrency trading firm. Bakkt, which is backed by Intercontinental Exchange (ICE), the owner of the New York Stock Exchange, saw its stock soar closing 162% up. The talks are said to be advanced, with insiders indicating that the deal could soon be finalized.
The potential acquisition comes at a time when Bakkt has been struggling with profitability, despite efforts to establish itself as a leader in the crypto custody and trading space. While the exact valuation of the deal remains unclear, Bakkt's market cap was just over $150 million at the time of the report.
How Does This Affect $DJT?
$DJT is up 16% on the day due to the news. First, this move would broaden Trump’s involvement in the cryptocurrency space, which has been growing in importance as he continues to promote ventures like World Liberty Financial, a new crypto venture he helped launch. The acquisition could align TMTG with the growing trend of digital assets and potentially boost the company's market valuation, which already stands at $6 billion, despite generating modest revenues this year.
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For $DJT investors, this deal could spark renewed interest and potentially increased volatility in the stock. News of the talks has already sent $DJT's shares up by about 15%, indicating the market's positive response to the possibility of a crypto-focused expansion. If the deal goes through, it could enhance $DJT's positioning within both social media and financial technology, offering new growth opportunities for the company.
Moreover, Trump's ownership stake —53%—is a significant part of his overall wealth, and any substantial increase in the company’s value would further boost his financial standing. The acquisition could also be a strategic play ahead of his upcoming political ambitions, giving him a foothold in an industry that is likely to attract the attention of younger, tech-savvy voters.
