This is President-elect Trump’s second attempt to enter the cryptocurrency space.
The Financial Times reported late on Monday that President-elect Donald Trump’s social media firm is reportedly in advanced talks to purchase the cryptocurrency trading platform Bakkt. Two people with knowledge of the situation were quoted by the publication.
The stock market was rocked by the announcement, and shares of both companies soared. Trump Media Company shares (DJT +16.87%)
increased by 16% to $32, while Bakkt’s (BKKT +162.37%) stock surged by 162% to settle at about $29 just before the market closed. Trading in Bakkt was temporarily suspended due to the extraordinary surge.
Uncertainty surrounds the specifics of the valuation under discussion in the transaction. According to the Financial Times, Bakkt’s market capitalization was just over $150 million as of Monday.
Bakkt, which is headquartered in Alpharetta, Georgia, was founded by Intercontinental Exchange (ICE +1.40%) (ICE), which owns 55% of the company. Additionally, the New York Stock Exchange is owned by ICE. The development highlights the potential for strategic alignments in this quickly changing space as well as the growing interest in cryptocurrency-focused ventures.
The latest event represents yet another noteworthy entry into the cryptocurrency market by Donald Trump. Throughout his presidential campaign, Trump has embraced digital currencies in a number of ways, positioning himself as the “crypto candidate.” As a sign of his openness to the emerging industry, his campaign started to accept cryptocurrency donations. His affiliation with the cryptocurrency community was further cemented when he made a noteworthy appearance at a significant Bitcoin conference.
In a bolder move, Trump partnered with longtime business associates to launch World Liberty Financial, a new cryptocurrency venture. The business endeavor is viewed as a calculated move to leverage his expanding clout in the digital asset sector.
Trump’s election victory has sparked a fervent reaction from the cryptocurrency markets, with Bitcoin rising closer to $100,000. Under his leadership, the market rally highlights the expectation of a policy environment that could hasten the widespread adoption of cryptocurrencies.
