Cryptocurrency continues to rise in prominence under new US President Donald Trump’s administration, as a crypto trading company could soon be among the companies owned by the billionaire president.
Reports have emerged that Trump Media is considering acquiring crypto company Bakkt in order to gain a foothold in the digital assets sector.
Advanced discussions with Bakkt
Two people who wished to remain anonymous during ongoing negotiations reportedly told the Financial Times that Trump Media was already close to finalizing a deal that would see the social media company buy crypto firm Bakkt.
The unidentified sources said Trump’s business team was in “advanced talks” with the cryptocurrency trading platform’s executives about a possible acquisition.
This pending acquisition deal indicates the new president’s growing interest in becoming a key player in the cryptocurrency space as he prepares to take office in the coming days.
It can be recalled that before the US presidential election, Trump had launched a crypto company called World Liberty Financial. Under this deal, he can get 75% of the platform’s net coin revenue without any liability.
Trump’s social media company in talks to buy crypto firm Bakkt, FT reports
– UNITED STATES TODAY (@USATODAY) November 19, 2024
Trump Media and Bakkt Stocks Soar
News of the acquisition deal sparked positive feelings at both Trump Media and Bakkt.
Analysts said that on Monday, the value of Trump Media shares increased and was 16% higher at the end of the trading day, fueled by reports that the social media company would soon buy the exchange platform of cryptocurrencies.
Bakkt stock also rose, gaining more than 162% by market close. The majority of the cryptocurrency trading company’s shares are listed on the Intercontinental Exchange (ICE) of the New York Stock Exchange (NYSE).
Meanwhile, Trump still owns about a 60% stake in Trump Media, which has a market capitalization of about $7.1 billion. The shares will remain in his name since the president-elect does not intend to dispose of them anytime soon.
Good time
Analysts believe that Trump’s interest in acquiring the cryptocurrency trading company came at the right time as the company has struggled to stay afloat.
Although the business is improving compared to last year, Bakkt admitted that the company “may not be able to continue operations.”
The company maintained that in the short term, the crypto firm has sufficient capital to operate for at least 12 months, saying “this determination could change in the future,” which raised questions about whether whether the company can continue as a “viable entity”. .”
Last March, the NYSE warned Bakkt of the possibility of being delisted from the exchange because its common stock had been trading below the per-share minimum for 30 consecutive trading days.
Featured image from NBC News, chart from TradingView
