Cryptocurrency continues to gain prominence under the administration of incoming US President Donald Trump as a crypto trading firm may soon become part of the companies owned by the billionaire president.
Reports disclosed Trump Media eyes to acquire the Bakkt crypto company to gain a foothold in the digital asset industry.
Reports said that two individuals who wanted to remain anonymous during the ongoing negotiation told the Financial Times that Trump Media is already nearing the finalization of a deal that would allow the social media firm to buy the crypto firm Bakkt.
The unidentified sources said that Trump’s business team is in “advanced talks” with the executives of the cryptocurrency trading platform for a possible acquisition.
This ongoing acquisition deal indicates the growing interest of the incoming president to become a key player in the cryptocurrency realm as he prepares to take office in the upcoming days.
It can be recalled that before the US presidential election, Trump launched a crypto venture called World Liberty Financial. Under the deal, he can get 75% of the platform’s net coin revenue with no liability.
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The news of the acquisition deal has brought positive sentiments to both Trump Media and Bakkt.
Analysts said that on Monday, the value of Trump Media stocks went up and was 16% higher at the end of the trading day, fueled by reports that the social media firm would soon purchase the crypto exchange platform.
Bakkt stock also moved up, gaining more than 162% at the close of the market. The majority of the crypto trading firm’s stocks are listed in the New York Stock Exchange (NYSE) Intercontinental Exchange (ICE).
Meanwhile, Trump still holds about 60% interest in Trump Media, which has a market capitalization of roughly $7.1 billion. The shares will remain under his name as the President-elect has no intention of disposing of it anytime soon.
Analysts see that Trump’s interest in acquiring the crypto trading firm came at the right time since the company is having difficulty staying afloat.
Although the company is improving compared to last year, Bakkt admitted that the firm “may not be able to continue as a going concern.”
The firm has maintained that in the short-term, the crypto company has adequate capital to continue for at least 12 months, saying that “that determination may change in the future” which raised questions on if the company can continue as a “viable entity.”
Last March, the NYSE warned Bakkt of the possibility of being delisted from the stock market as its common stock is being traded below the minimum per share for 30 consecutive trading days.
Featured image from NBC News, chart from TradingView
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