Trump Media group reportedly in talks to buy crypto marketplace Bakkt as bitcoin approaches $100K
11/20/2024 06:33
President-elect Trump's social media company is reportedly in advanced talks to purchase cryptocurrency exchange Bakkt as digital assets continue to soar.
Trump Media and Technology Group (TMTG) is reportedly in advanced talks to purchase cryptocurrency exchange Bakkt at a time digital assets are soaring since President-elect Trump — majority shareholder of the social media company — secured a second term in the White House.
Citing two sources, the Financial Times reported Monday that TMTG, which operates Truth Social, is finalizing an all-share purchase of Bakkt, but details on a valuation were not clear.
Bakkt said Tuesday it was aware of "the rumors that appeared in the financial press regarding a potential transaction involving the company," but the company "does not comment on market rumors or speculation."
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Shares of Bakkt, backed by NYSE-owner Intercontinental Exchange, which closed up 162.5% on Monday after FT's report, were up another 14.8% in premarket trading Tuesday.
TMTG shares, which closed up 16.7% on Monday, were down more than 7% in afternoon trading on Tuesday.
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A TMTG purchase of Bakkt would help consolidate Trump's involvement with an industry he championed in the run-up to the U.S. presidential election.
Bitcoin has skyrocketed over 32% since Nov. 5 to an all-time high of more than $93,000 as traders bet Trump's promised support for digital assets would lead to a less restrictive regulatory regime and inject some life back into bitcoin after a listless few months.
But the market gains go beyond bitcoin. The total cryptocurrency market value has soared to an all-time high of $3.16 trillion, according to CoinGecko. Open interest on derivatives exchanges is at a record high of over $102 billion, Coinglass data showed.
Ethereum has jumped about 32% since the election, while the market value of decentralized finance-focused tokens touched a five-month high of $93 billion.
Trump previously launched a new crypto venture, World Liberty Financial.
Reuters contributed to this report.
Original article source: Trump Media group reportedly in talks to buy crypto marketplace Bakkt as bitcoin approaches $100K