Trump Media is reportedly in “advanced talks” to acquire cryptocurrency trading firm Bakkt, according to the Financial Times report. The news caused shares of both companies to soar, in a development straddling the thin line separating Trump’s media interests from the crypto market.
Bakkt’s tech services could eventually be the key to connecting the world of digital finance and entertainment, especially looking at the rise of cryptocurrency in many mainstream industries globally, from online gaming to financial institutions and more.
Cryptocurrency’s growing influence in various sectors, including online gaming and entertainment, could be a factor in Trump Media’s interest in Bakkt. Cryptocurrencies have become the preferred choice of gamers and iGamers alike for their faster transaction speeds and enhanced security.
According to Gary McLellan, players need to pick the best crypto casino for online gaming. He says reading the fine print can prevent players from gambling on unlicensed platforms and paying additional fees to withdraw cryptocurrencies. Regulated and licensed platforms will ensure payouts are done when requested with low transaction fees. This rise in crypto adoption aligns with the strategic development of the Bakkt acquisition, with Trump Media positioning itself to expand further into this evolving market.
The report sent shockwaves through the markets. Shares of Trump Media, which operates the Truth Social app, jumped by over 16% shortly after the news broke. Trading under the ticker DJT on Nasdaq, the company’s market value has fluctuated significantly in the lead-up to the 2024 presidential election, driven by retail investors reacting to Donald Trump’s political prospects.
Bakkt’s shares increased significantly, increasing more than 162%. The cryptocurrency trading firm, created by Intercontinental Exchange (ICE), experienced repeated trading halts due to the volatility following the announcement.
This potential acquisition marks the latest step in Trump’s expansion into cryptocurrency. While preparing for his second term in office, Trump has been making waves in the crypto space. Just weeks before the presidential election, he announced the launch of a new token through a venture called World Liberty Financial. As part of this deal, Trump and his family are set to receive 75% of the net revenue from its coin, with no liability involved.
Despite facing significant financial losses, including a net loss of $363 million on just $2.6 million in revenue for the year, Trump Media is still valued at over $7 billion, thanks to investor interest tied to Trump’s political brand. The company’s third-quarter earnings report revealed that it holds almost $673 million in cash and high-liquid assets.
Founded in 2018, Bakkt was designed to provide technology services for cryptocurrency investors. However, the company has faced several challenges. In its most recent fiscal quarter, Bakkt reported revenue of $328.4 million but also posted an operating loss of $27.4 million. Despite a 48% improvement from the previous year, Bakkt has warned that its financial situation remains precarious. The company stated that while it has enough capital to remain operational for at least 12 months, its viability remains uncertain.
