Donald Trump’s social media company ‘Trump Media and Technology Group,’ which operates Truth Social, is reportedly close to an all-stock acquisition of crypto trading firm Bakkt.
Social media company Trump Media and Technology Group, owned by President-elect Donald Trump, is reportedly in advanced talks to buy cryptocurrency trading firm Bakkt. The news was announced by the Financial Times, citing two persons with knowledge of the talks.
Trump-Owned Social Media Company Set to Acquire Crypto Platform
According to FT, the social media company that operates Truth Social, Trump Media and Technology Group, is in “advanced talks” to acquire the crypto platform Bakkt. If closed, the deal would see the president-elect’s company purchase Atlanta-based Bakkt from the operator of the New York Stock Exchange, Intercontinental Exchange (ICE).
The president-elect maintains a 53% stake in Trump Media and Technology Group.
Bakkt offers licensed and regulated custody, trading and onramp solutions for crypto and was founded in 2018 by the Intercontinental Exchange (ICE). ICE maintains a 55% interest in the company. The platform initially offered an institution-grade trading platform for daily physically settled bitcoin futures contracts but struggled to get this product off the ground. Soon after launching its first cryptocurrency options product, the company announced it would pivot to focus on crypto custody and a consumer-focused reward-point operation. Bakkt, however, recently said it plans to downscale its custody business. Bakkt’s first CEO, Kelly Loeffler, briefly stepped down from her position in 2019 to become a Republican US Senator from Georgia under Donald Trump’s first presidential administration and is reportedly involved in organizing Trump’s January 2025 inauguration. Loeffler is also married to the CEO of ICE, Jeff Sprecher.
President Trump’s Involvement and History with Crypto
Donald Trump raised hundreds of millions from major crypto players during his campaign, including a sizeable $2 million donation from co-founders of Gemini, Tyler and Cameron Winklevoss. Trump launched several significant crypto efforts, including multiple NFT series and plans to launch a decentralized finance (DeFi) project called World Liberty Financial. According to the World Liberty Financials’ white paper, users will have access to a digital wallet, credit account system, and options to borrow or lend funds. The platform will also allow token-based investments in various assets, including crypto. The DeFi project also plans a non-transferable governance token that will give users a degree of control over platform decisions.
Trump has also made numerous pro-crypto statements and plans to implement pro-crypto policies. Notably, Trump stated earlier in the year that he wants all remaining Bitcoin (BTC) to be mined in the United States, adding that such a move would help the US become energy-dominant.
Since winning the US presidential election by a landslide, Trump has made numerous policy changes, including appointing Elon Musk and Vivek Ramaswamy to lead the Department of Government Efficiency, or DOGE. President Trump released a statement which said DOGE will pave the way for his administration to “dismantle Government Bureaucracy, slash excess regulations, cut wasteful expenditure, and restructure Federal Agencies – Essential to the “Save America” Movement.”
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.