Which crypto company is Donald Trump’s Trump Media interested in?
Trump Media, owned by Donald Trump, is talking about buying Bakkt. Bakkt helps with trading digital assets.
Bakkt started in 2018 by Intercontinental Exchange (ICE). ICE also runs the New York Stock Exchange (NYSE). Kelly Loeffler, Bakkt’s CEO, is married to Jeffrey Sprecher, ICE’s CEO. Loeffler helped Trump’s inaugural committee.
The company has been looking to sell for months, Bloomberg reported .
Shares of Bakkt (BKKT) have doubled after rumors of a Trump Media buyout. BKKT shares went up 162% to $29.71 on November 18. DJT shares also rose nearly 17% by 1:00 p.m.
Bakkt went public in 2021, reaching a high of $1,270. But its value dropped over 99% by November 10.
Bakkt raised hundreds of millions from investors like Boston Consulting Group and Galaxy Digital. But it lost millions, including $1.5 billion in the third quarter of 2022.
A SPAC is a company created to merge with another private company. It’s a way to go public without an IPO.
“We will likely not be able to continue our operations. We believe our cash position is insufficient to fund operations for the next 12 months,” Coindesk quotes Bakkt’s February report as saying.
In March, Bakkt faced delisting from the NYSE. Its share price was too low.
Bakkt started with Bitcoin futures trading. It introduced a digital wallet in 2021 but closed it in 2023. Now, it focuses on cryptocurrency custody and trading.
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Trump’s plans
As rumors of buying Bakkt spread, Coinbase CEO Brian Armstrong met with Trump. They talked about personnel appointments, The Wall Street Journal reports .
Trump wants crypto-friendly people in key roles. His team is talking to crypto reps about policy changes. The Washington Post says Trump will be softer on cryptocurrencies.
Trump has quickly filled cabinet spots. The Block reports he picked Bitcoin-friendly Robert F. Kennedy for Health and Human Services. He also chose Elon Musk and Vivek Ramaswamy for a new department.
The new department, DOGE, is named after Dogecoin. Musk loves Dogecoin.
Trump said the department will help reform government. It will work with the White House and Office of Management and Budget.
Trump also supports World Liberty Financial (WLFI), a crypto lending platform. It includes his sons’ team. WLFI’s infrastructure was Aave, the biggest crypto lending platform.
Trump announced WLFI token sales. He’s called the “chief human rights defender of cryptocurrencies.”
