Trump Media and Technology Group (TMTG) is reportedly in advanced negotiations to acquire the cryptocurrency platform Bakkt in an all-stock transaction. This potential deal comes as Bakkt's former CEO, Kelly Loeffler, who now serves as the chair of Trump's inaugural committee, played a significant role in the company's operations [72bc307a]. Following the announcement of the talks, Bakkt's stock surged by 163%, while TMTG's shares rose by 16% [72bc307a].
Bakkt, founded in 2018, is currently 55% owned by the Intercontinental Exchange (ICE) and has a market capitalization of approximately $150 million. In contrast, TMTG is valued at around $7 billion, although both companies have faced operational challenges. Bakkt is at risk of being delisted, and TMTG has yet to turn a profit [72bc307a]. Trump's 53% stake in TMTG is estimated to be worth about $3.7 billion [72bc307a].
This acquisition could mark a significant shift for TMTG, which has been navigating financial difficulties and legal challenges, including a recent insider trading scandal involving its executives [03bd0c6e][87a6e717]. The ongoing discussions about the Bakkt acquisition reflect TMTG's strategy to diversify its portfolio and enhance its market presence in the cryptocurrency sector, which has been gaining traction in recent years [72bc307a].
As TMTG continues to explore potential mergers and acquisitions, the outcome of this deal could have substantial implications for both companies and their stakeholders, particularly in light of the volatile nature of the cryptocurrency market and the ongoing scrutiny of TMTG's financial practices [72bc307a].