President-elect Donald Trump Solidifies Support for Cryptocurrency, Nearing Deal to Acquire Crypto Trading Firm Bakkt

DJT's stock price surged nearly 17% on Monday after the Financial Times reported that the company is in "advanced talks" to buy Bakkt

President-elect Donald Trump is reportedly showing strong support for cryptocurrency, with Trump Media & Technology (DJT) nearing a deal to acquire crypto trading firm Bakkt. This news comes amid a significant rise in Bitcoin’s value, which reached a record high of $94,038 on Tuesday.

DJT’s stock price surged nearly 17% on Monday after the Financial Times reported that the company is in “advanced talks” to buy Bakkt. The platform went public in October 2021 and generated $53.1 million in revenue last year.

The specific financial terms of the acquisition are not yet clear, but Bakkt’s market capitalisation stood at $401.1 million as of Monday’s close.

Bakkt's stock experienced a dramatic increase, soaring over 162% to $29.71 on Monday. However, the stock faced some volatility, closing down 0.7% after initially climbing another 21% on Tuesday.

This potential acquisition marks a shift in Trump's stance on digital assets. After expressing scepticism about the crypto market in the past, he launched his cryptocurrency initiative, World Liberty Financial, in September.

During his campaign, Trump proposed ambitious measures such as creating a national Bitcoin reserve and establishing a presidential advisory council to guide regulatory frameworks for the industry.

On the same day as the Bakkt news, Trump met with Coinbase CEO Brian Armstrong, their first meeting since the election. While details of their discussion were not disclosed, the meeting is part of Trump's broader strategy to fill key positions in his administration, including a focus on cryptocurrency regulation.

Armstrong has expressed support for Trump-appointed SEC commissioner Hester Peirce to lead the Securities and Exchange Commission. This move aligns with Trump's plans for regulatory oversight in the crypto space. Notably, Coinbase contributed over $100 million to various political action committees during the election cycle, with significant funds allocated to support pro-crypto candidates.

Despite some fluctuations, DJT stock is up over 70% year-to-date, reflecting the market's positive sentiment towards Trump's crypto ambitions. As Bitcoin continues to gain traction, the implications for the cryptocurrency landscape under Trump's leadership could be substantial.