In a significant move that signals further expansion into the digital asset space, Donald Trump’s media enterprise is approaching the final stages of negotiations to acquire cryptocurrency trading platform Bakkt from Intercontinental Exchange (ICE).
The proposed all-share transaction by Trump Media and Technology Group (TMTG), which operates Truth Social, comes at a time when the company’s market valuation stands at an impressive £6 billion, despite modest revenue figures of £2.6 million this year. This substantial market capitalisation provides TMTG with valuable leverage for potential acquisitions.
Market reaction to the news was dramatic, with Bakkt’s shares experiencing a remarkable 162 per cent surge, whilst TMTG’s stock climbed 16.7 per cent. The exact valuation of the deal remains undisclosed, though Bakkt’s market capitalisation was approximately £150 million prior to the announcement.
The strategic move aligns with Trump’s recent foray into cryptocurrency markets through World Liberty Financial, a venture that promises to generate substantial fees for the former president. The crypto sector has responded positively to Trump’s election victory, with Bitcoin surging over 30 per cent amid expectations of favourable industry legislation.
ICE maintains a 55 per cent economic interest in Bakkt, which has struggled to achieve profitability since its inception. The platform’s former chief executive, Kelly Loeffler, who serves as co-chair of Trump’s inauguration committee, brings an interesting political dimension to the potential deal.
Truth Social’s current reach remains modest, averaging 646,000 daily website visits this month, a fraction of competitor X’s 155 million. However, Trump’s stake in TMTG now represents more than half of his £5.7 billion net worth, according to Bloomberg’s calculations.
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