Trump’s social media group in talks to buy crypto exchange Bakkt
Key Takeaways
- Trump Media & Technology Group is negotiating to acquire crypto exchange Bakkt through an all-share transaction.
- The acquisition would expand Trump’s influence in the crypto market amid rising Bitcoin prices since his election victory.
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Donald Trump’s Media and Technology Group (TMTG) is in advanced negotiations to acquire Bakkt, a crypto trading venue owned by Intercontinental Exchange (ICE).
According to a report by the Financial Times, TMTG, which operates Truth Social and holds a $6 billion equity valuation despite generating only $2.6 million in revenue this year, plans to use its stock as currency for the acquisition.
The deal would expand Trump’s presence in the crypto market, following his promotion of World Liberty Financial, a separate crypto venture.
The crypto market has seen significant movement since Trump’s election victory, with Bitcoin rising more than 30% amid speculation about favorable industry legislation under his administration.
ICE maintains a 55% economic interest in Bakkt, which was initially led by Kelly Loeffler, ICE’s former head of marketing and former Republican senator for Georgia.
Loeffler, who is married to ICE founder and CEO Jeff Sprecher, currently serves as co-chair of Trump’s inauguration committee.
Bakkt’s crypto custody business, which operates under a New York regulatory license, is expected to be excluded from the deal. The division reported operating losses of $27,000 from revenues of $328,000 in the third quarter.
Truth Social, averaging 646,000 daily website visits this month according to Similarweb, significantly lags behind X, which records 155 million visits daily.
Despite its relatively small reach, Truth Social has become a key asset for Trump, with his 53% stake in TMTG representing over half of his $5.7 billion net worth, as calculated by Bloomberg.
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