Key Highlights
The Trump Media & Technology Group (TMTG) is currently engaged in negotiations to purchase the cryptocurrency exchange Bakkt through an all-stock transaction. This move would enhance Trump’s foothold in the crypto sector, coinciding with the recent rise in bitcoin prices following his election victory.
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According to reports from the Financial Times, TMTG, which oversees Truth Social and boasts a stock market valuation of $6 billion despite generating only $2.6 million in revenue this year, plans to fund the acquisition using its stock. This strategy is indicative of TMTG’s ambition in the cryptocurrency space.
This acquisition would extend Trump’s influence in the digital currency market, bolstered by his previous interest in another crypto initiative known as World Liberty Financial.
Since Trump’s presidential win, the cryptocurrency landscape has experienced notable fluctuations, particularly with Bitcoin’s value surging over 30%, fueled by speculation about potential supportive legislation for the industry during his administration.
Intercontinental Exchange (ICE) holds a 55% economic stake in Bakkt, which was formerly led by Kelly Loeffler, ICE’s ex-marketing chief and a former Republican senator from Georgia.
Loeffler, who is married to ICE’s founder and CEO Jeff Sprecher, also plays a role as co-chair of Trump’s inaugural committee.
Notably, Bakkt’s crypto custody service, which operates under a regulatory license from New York state, is anticipated to be excluded from the acquisition. In the third quarter, this division registered an operating loss of $27,000 on a revenue of $328,000.
As reported by Samelweb, Truth Social has averaged approximately 646,000 daily visits this month, significantly lagging behind X, which sees about 155 million visitors daily.
Despite its smaller audience, Truth Social has emerged as a critical asset for Trump, representing 53% of TMTG’s shares and accounting for a substantial portion of his $5.7 billion net worth, according to Bloomberg.
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