Trump Media in Advanced Talks to Acquire Crypto Exchange Bakkt
Shares of Donald Trump’s social media company, Trump Media & Technology, fluctuated following reports of the president-elect advancing his crypto business interests.
The Financial Times reported that Trump Media is in “advanced talks” to acquire the crypto exchange Bakkt, owned by Intercontinental Exchange (ICE).
This news resulted in a 162% increase in Bakkt shares on Monday and a 17% gain for Trump Media (ticker DJT). Bakkt continued its rally into Tuesday, trading 7% higher midway through the session, while DJT lost over 8%.
Trump Media began trading on Nasdaq last spring after merging with Digital World Acquisition Corp. Currently around $30, DJT shares are up almost 150% from their September low but remain about 40% below their IPO price of $50.
Recent gains have been inconsistent; shares rose 65% at the end of October due to optimism regarding Trump’s election prospects. However, since his victory, share prices have remained flat, with only a modest increase the day after the election followed by a loss of gains.
The market appears uncertain about the implications of a Trump win for the social media company. The rise indicates investor confidence in acquiring Bakkt, but subsequent declines suggest confusion regarding the rationale behind it.
The acquisition story will be monitored closely, particularly regarding the impact of a public company's majority shareholder moving into the White House.