Trump Media Eyes Crypto Market via Bakkt Merger

- TMTG in Merger Discussions with Bakkt - TMTG Opts to Exclude Bakkt's Custody Division [Unblock Media] The U.S. cryptocurrency market is closely watching the potential merger between TMTG (Trump Media & Technology Group) and Bakkt. With TMTG's recent stock rise, the company's asset valuation has reached $6 billion, making it a strong contender for acquiring Bakkt. Bakkt primarily offers custody services for major digital assets like Bitcoin (BTC) and Ethereum (ETH), but due to high operational costs and reduced profitability, its custody division is likely to be excluded from the merger discussions. TMTG's stock surge has gained significant attention following former President Trump's electoral success, with the company reporting $2.6 million in revenue this year yet being valued at $6 billion. Notably, Bakkt's stock price soared 86% after the acquisition announcement, and TMTG's stock also increased by about 14%, reflecting the market's optimistic outlook on the merger. Bakkt's current market value is estimated at slightly over $150 million, and TMTG is contemplating a full equity purchase. Apart from custody services, Bakkt provides cryptocurrency payment solutions and trading platforms, recently focusing on business-to-business payment services. This diversified approach is viewed as a major factor in sustaining Bakkt's growth potential. Trump's Truth Social platform boasts an average of approximately 646,000 daily visitors, a relatively smaller scale compared to Elon Musk's X platform. However, over half of Trump's $5.7 billion net worth is comprised of TMTG stock, underscoring the importance of his investment and TMTG's market position. Although Bakkt's custody division is currently recording losses, potentially imposing an economic burden on TMTG, the exclusion of this loss could allow TMTG to leverage Bakkt's technological potential and diversified service approach. The merger discussions between TMTG and Bakkt hold the potential to invigorate the cryptocurrency market, potentially fostering long-term growth and innovation for both companies. This acquisition would provide TMTG with an entry point into the crypto market and hint at developing a mainstream cryptocurrency payment system utilizing Bakkt's existing technological infrastructure. Overall, these merger talks indicate that TMTG is exploring new expansion avenues in the cryptocurrency market, and Bakkt's technological advancements offer a synergistic opportunity. This strategic collaboration is expected to yield significant outcomes for both parties.