The Trump Media and Technology Group (TMTG), listed as $DJT, is reportedly nearing a deal to acquire the cryptocurrency trading platform Bakkt, owned by Intercontinental Exchange (ICE), the parent company of the New York Stock Exchange. The acquisition is expected to be an all-stock deal, according to sources cited by the Financial Times.
Following the news, stocks in both companies surged. USA Today reported that Bakkt shares skyrocketed over 160%, triggering multiple trading halts due to volatility. Trump Media shares also rose, ending the day up 16.7%.
Despite its strong stock market performance, Trump Media has struggled financially, reporting a $19 million net loss in the third quarter and $1 million in revenue. Still, the company holds a market cap of over $7 billion and had $673 million in cash and short-term investments as of September 30.
Finance professor Jay Ritter of the University of Florida criticized TMTG’s approach, stating, “The only thing Trump Media has demonstrated they’re good at is selling overvalued equity. Now, they’re using their cash stockpile to buy an operating business that might generate actual revenue and profit.”
President-elect Donald Trump recently launched a new crypto venture, World Liberty Financial, which features a U.S. dollar-pegged stablecoin. Announced in September, the venture aims to establish the U.S. as the global leader in cryptocurrency and Bitcoin. The Trump family has also explored the crypto space with ventures like NFTs.
In September, Trump declared his vision to make America the “world capital for crypto and Bitcoin.”