President-elect Donald Trump continues to embrace cryptocurrency after making digital assets a key part of his campaign. Trump Media & Technology is reportedly closing in on a deal to buy crypto trading firm Bakkt, according to reports. Meanwhile, Trump on Monday met with Coinbase CEO Brian Armstrong. Bitcoin hit another record high on Tuesday.
Trump Media stock leaped nearly 17% Monday following a Financial Times report that the Truth Social parent is in "advanced talks" to acquire crypto trading and brokerage platform Bakkt. Financial terms and valuation details were unclear, according to two unnamed sources cited in the article.
Bakkt, which went public in October 2021, generated $53.1 million in revenue last year, FactSet data shows, and had a market capitalization of $401.1 million as of Monday's close. Trump Media group has a $7.1 billion valuation at Monday's close.
BKKT stock vaulted more than 162% to 29.71 on Monday following the report. Shares leapt another 21% early Tuesday but reversed and closed down 0.7%.
The news is Trump's latest connection to crypto. The President-elect in September launched his own cryptocurrency project, World Liberty Financial. Trump, a former crypto skeptic, made numerous campaign vows regarding digital assets, including building a bitcoin reserve, attempting to nationalize bitcoin, and firing SEC Chair Gary Gensler.
Trump, Coinbase Meeting
Meanwhile, Trump on Monday was set to meet with Coinbase CEO Brian Armstrong, marking the pair's first meeting since Election Day, the Wall Street Journal reported. It is currently unclear what the meeting docket included, but it comes as Trump fills out his cabinet picks and other senior roles. Trump previously said he would appoint a bitcoin and crypto presidential advisory council, which would design regulatory guidelines for the industry.
Since the election, Armstrong has publicly supported Hester Peirce, a Trump SEC commissioner, as the "best choice" to lead the regulator. Coinbase contributed more than $100 million to various political action committees ahead of the election, according to the WSJ. A bulk of the contributions went toward Fairshake, a crypto PAC that spent over $40 million targeting candidates for Congress.
Trump Media stock spiked 16.7% Monday, rebounding from support near its 50-day moving average. Shares slid 8.9% Tuesday after popping nearly 7% in early trade.
DJT stock has trended down from its late October high of 54.68. Still, DJT stock rallied more than 70% in 2024.
The President-elect holds a 65% stake in Trump Media, according to reports.
Meanwhile, bitcoin rallied to a new record of $94,038 late Tuesday, CoinDesk data shows, surpassing its Nov. 13 high of $93,445 in the wake of the U.S. elections. Bitcoin eased below $92,400 after touching the record. The world's top cryptocurrency remains up nearly 120% so far this year.
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