Trump Media riding the bull run its namesake created to reportedly acquire crypto-trading platform
Bakkt Holdings Inc. is one of the most actively traded US stocks in the premarket session after the FT reports that Trump Media & Technology Group is pursuing an acquisition of the crypto-trading platform.
The stock more than doubled late in trading on Monday following the news, and continues to gain ahead of the open. As of 8:45 a.m. ET, 2.15 million shares have already changed hands in the premarket, which is already 10x its one-month average daily volume traded heading into this week.
President-elect Donald Trump’s election victory — along with wins for congressional candidates backed by the crypto industry — has been hailed as the catalyst behind the recent surges in the likes of bitcoin and dogecoin, among others.
Trump Media, the parent company of Truth Social, has paltry revenues (equivalent to that of the average US McDonald’s franchise) and continues to lose money. But one thing it does have is a relatively strong balance sheet: almost $670 million in cash and no debt to speak of. That gives the company a bit of a war chest to pull off smaller-scale acquisitions.
That being said, though Bakkt Holdings Inc. was worth just over $150 million to start the week, this deal would reportedly be an all-share purchase, according to the FT. DJT has a market cap in excess of $7 billion, and a significant portion of the president-elect’s wealth ($6.3 billion, per Bloomberg) is attributable to his 52.9% ownership stake in the company. This acquisition, if completed, would entrench Trump’s net worth more directly with a volatile industry he’s championed.
The stock more than doubled late in trading on Monday following the news, and continues to gain ahead of the open. As of 8:45 a.m. ET, 2.15 million shares have already changed hands in the premarket, which is already 10x its one-month average daily volume traded heading into this week.
President-elect Donald Trump’s election victory — along with wins for congressional candidates backed by the crypto industry — has been hailed as the catalyst behind the recent surges in the likes of bitcoin and dogecoin, among others.
Trump Media, the parent company of Truth Social, has paltry revenues (equivalent to that of the average US McDonald’s franchise) and continues to lose money. But one thing it does have is a relatively strong balance sheet: almost $670 million in cash and no debt to speak of. That gives the company a bit of a war chest to pull off smaller-scale acquisitions.
That being said, though Bakkt Holdings Inc. was worth just over $150 million to start the week, this deal would reportedly be an all-share purchase, according to the FT. DJT has a market cap in excess of $7 billion, and a significant portion of the president-elect’s wealth ($6.3 billion, per Bloomberg) is attributable to his 52.9% ownership stake in the company. This acquisition, if completed, would entrench Trump’s net worth more directly with a volatile industry he’s championed.
