President-elect Donald Trump’s company, Trump Media and Technology Group (TMTG), is reportedly in talks to buy Bakkt, a platform for trading cryptocurrency.
What’s the Deal?
- TMTG plans to purchase all of Bakkt’s shares, according to the Financial Times, but Bakkt’s crypto custody business (storing cryptocurrency securely) won’t be included in the deal.
- Bakkt was created by Intercontinental Exchange, the owner of the New York Stock Exchange.
Why Does This Matter?
- TMTG currently operates Truth Social, a social media platform, and buying Bakkt could expand the company into cryptocurrency trading.
- Since Trump’s election win, TMTG’s stock value has soared to $6 billion, giving it the resources to explore new ventures like this acquisition.
What’s Going On with Bakkt?
- Earlier this year, Bakkt announced it might sell parts of its business and hired advisors to help explore its options.
- The company faced financial struggles, even telling the SEC in February that it might not be able to continue operations.
- Bakkt later named Andy Main as its CEO, who announced cost-cutting measures and new investments that helped stabilize the company.
Crypto’s Big Moment Under Trump
- Trump’s victory has excited crypto enthusiasts. Bitcoin hit record highs after the election, and Trump pledged to make the U.S. the “crypto capital of the world” during his campaign.
- He also promised to establish a national bitcoin stockpile, further signaling his support for the industry.
- Trump has criticized SEC Chairman Gary Gensler for being tough on crypto companies and has vowed to replace him with a more crypto-friendly regulator. This has raised speculation that his administration might take a lighter approach to crypto regulations.
What’s Next?
If the deal goes through, TMTG could move beyond social media into the growing world of cryptocurrency, aligning with Trump’s vision of embracing crypto innovation in his presidency.