Trump Media Explores Crypto Expansion with Proposed Bakkt Acquisition

President-elect Donald Trump’s company, Trump Media, has been reported to be in advanced talks to acquire cryptocurrency platform Bakkt in a deal that is estimated to be worth over $150 million. This acquisition would ideally place Trump Media in an advantageous position within the cryptocurrency market. The reported development clearly shows that most organizations are developing a growing interest in crypto-related projects and the potential profits they stand to gain from expanding into the crypto industry. 

Most people might think that they have already missed an opportunity to invest in crypto when looking at the current Bitcoin price which is now just a few thousand dollars short of $100,000, but that is not the case. There are different ways crypto investors and enthusiasts can acquire crypto at affordable prices and sometimes even for free. Besides buying during market dips or taking advantage of airdrops and referral bonuses, crypto investors can also participate in crypto presales to get in early for less. 

A crypto presale is when crypto developers sell their crypto to certain investors before it goes public. Crypto expert and author Michael from 99Bitcoins explains that the best upcoming crypto presales include coins and projects that may increase in value by 1,000x. Because investors get to buy in early at a relatively low cost, it means that their investments can grow significantly in value over time. 

The popularity of cryptocurrencies is growing not only as investment assets but also as legal tender in various online markets. Trump Media, which has a market capitalization of more than $7 billion, can take advantage of Bakkt’s already established trading platform to expand its influence in the world of crypto.

The move by Trump Media to acquire Bakkt comes during Bitcoin’s climb toward record highs that are getting closer to the $100,000 mark. The Bitcoin price has already reached $97,671, and it is not showing any signs of going down. The market is looking very promising for investors and traders. Trump Media’s stance shows great ambition and determination to diversify into an area that is shaping the future of technology and finance. 

Bakkt, which has been operating at a loss for a long time, had been warned by the New York Stock Exchange earlier in the year that it faced the risk of being delisted because its shares had been trading at less than $1 for 30 days straight. In order to meet the stock exchange’s requirements and improve share value, the company made a reverse stock split, where it combined every 25 shares of the company’s stock into 1 share.

The news of the potential deal with Trump Media caused the shares of both firms to rise. Bakkt’s shares rose by around 162% earlier in the week, while Trump Media, which trades as DJT, saw a rise of more than 16%. Bakkt’s shares continued to rise by 7%, while DJT shares fell by more than 8% to trade at around $30. This figure is 40% less than their initial public offering price, which was set at $50.

When Bakkt was first launched, its goal was to facilitate crypto payments that prioritized consumers. After operating for a while, it decided to change its focus from crypto payments to trading and custody services. The proposed acquisition does not include Bakkt’s crypto custody services, which may be an indication that Trump Media intends to focus on controlling the company’s trading platform. Merging its social media influence with cryptocurrency trading could make Trump Media a strong player in the digital economy.

During the runup to the 2024 presidential election, Trump Media’s market value rose and fell inconsistently by billions of dollars. Towards the end of October, the voters’ optimism about Trump winning the elections led the market value of the shares to rise by over 60%. Both Bakkt and Trump Media’s shares have shown signs of volatility, which in the case of Trump Media is a reflection of the investors’ mixed feelings about the long-term impact of Trump’s victory. However, crypto enthusiasts are banking on the rumors that the Trump administration may be more crypto-friendly and implement new crypto policies. In the case of Bakkt, although investors are more optimistic about its potential acquisition, they still have some reservations and only time will tell how this acquisition plays out.