The potential acquisition of cryptocurrency firm Bakkt by Trump Media marks a bold move as the company seeks to diversify amid financial struggles.
Trump Media, known for the Truth Social app, has reported a $363 million net loss on just $2.6 million in revenue this year, yet it boasts a market cap exceeding $7 billion, driven by its ties to President-elect Donald Trump.
The deal, reported by the Financial Times, sent shares of both companies soaring, with Trump Media up 16% and Bakkt surging 162%. Bakkt’s ties to Trump ally Kelly Loeffler, a former U.S. senator and crypto executive, may facilitate the acquisition.
This move could expand Trump Media’s appeal to crypto-friendly audiences and boost revenue, but its financial instability raises questions about execution.
If successful, the acquisition could reposition Trump Media as a multifaceted platform, though its long-term impact remains uncertain.
Source:
NBCImage:
CNBC
