Is Trump taking his relationship with crypto to the next level?
Trump Media & Technology Group, which operates Trump's social media company Truth Social, is in talks to buy crypto trading firm Bakkt, the Financial Times reported.
Shares of Bakkt soared after the report on Monday and were up another 14.8% in premarket trading on Tuesday, CNBC reported. Bakkt and Trump Media declined to comment on the talks.
Bakkt, founded in 2018 to offer tech services to crypto investors, has had some financial challenges. The Georgia-based firm showed total revenue of $328.4 million and an operating loss of $27.4 million in its latest quarterly report, and said the company “may not be able to continue as a going concern," per CNBC.
In March, the company said the New York Stock Exchange had warned that it was at risk of being delisted, CNBC reported.
Discussions to purchase the firm are the latest sign that the president-elect's flirtation with the crypto community could get more serious.
Trump won support from crypto voters as he pledged on the campaign trail to make the U.S. the "crypto capital of the planet." Crypto is expected to lobby for a more favorable regulatory environment, but also faces questions about who will keep campaign donors in check and consumers safe, Salon reported.
In September, Trump endorsed World Liberty Financial, a cryptocurrency firm promoted by his sons Eric and Donald Jr., who have encouraged cryptocurrency as an alternative to what they describe as an anti-conservative banking system.
