Cryptocurrencies continue to gain prominence under the administration of incoming US President Donald Trump, as a cryptocurrency trading company may soon become part of the companies owned by the billionaire president.
Reports revealed Trump’s media eyes to get Bakkt Cryptocurrency Company To gain a foothold in the digital assets industry.
Advanced conversations with Bakkt
Two people who wanted to remain anonymous during ongoing negotiations reportedly told the Financial Times that Trump Media is already close to finalizing a deal that would allow the social media company to buy cryptocurrency company Bakkt.
The unidentified sources said that Trump’s work team is present “Advanced conversations” With cryptocurrency trading platform executives for a potential acquisition.
This ongoing acquisition signifies the incoming president’s growing interest in becoming a major player in the cryptocurrency world as he prepares to take office in the coming days.
It should be noted that before the US presidential elections, Trump launched a cryptocurrency project called World Liberty Financial. Under the deal, he can have it 75% of the net platform currency Revenue without any liability.
Trump’s social media company is in talks to buy cryptocurrency company Bakkt, the Financial Times reports https://t.co/qCGZGvaPHq
– USA Today (@USATODAY) November 19, 2024
Trump media, Bakkt shares rise
News of the takeover brought positive feelings for both Trump media And she cried.
On Monday, Trump Media shares rose 16% in value at the end of the trading day, boosted by reports that the social media company will soon buy the cryptocurrency exchange, analysts said.
Bakkt stock also rose, rising more than 162% at market close. The majority of the cryptocurrency trading company’s shares are listed on the New York Stock Exchange (New York Stock Exchange) Intercontinental Stock Exchange (ICE).
Meanwhile, Trump still owns a roughly 60% stake in Trump Media, which has a market value of about $7.1 billion. The shares will remain in his name, as the president-elect has no intention of getting rid of them anytime soon.
The correct timing
Analysts say Trump’s interest in acquiring the cryptocurrency trading company is timely given that the company is having difficulty staying afloat.
Although the company has improved compared to last year, Bakkt admitted that the company “may not be able to continue as a going concern.”
The company emphasized that in the short term, the cryptocurrency company has enough capital to survive for at least 12 months, saying that “this determination may change in the future,” raising questions about whether the company can continue as a “viable entity.”
Last March, the New York Stock Exchange warned Bakkt of possible delisting from the stock market as its common shares traded below the per-share floor for 30 consecutive trading days.
Featured image from NBC News, chart from TradingView