The Trump Media and Technology Group ($DJT) is reportedly close to purchasing a cryptocurrency trading platform.
The platform, Bakkt, is owned by Intercontinental Exchange (ICE), the parent company of the New York Stock Exchange.
TMTG is working towards an all-stock acquisition, two people familiar with the plan told the Financial Times.
According to a report from USA Today, stocks in both companies soared after the news broke.
“Shares of Bakkt, backed by NYSE-owner Intercontinental Exchange, skyrocketed more than 160% and were halted multiple times due to volatility. Trump Media shares ended the day up 16.7%,” the report states.
The report added, “Trump Media has struggled to turn a profit, reporting earlier this month a $19 million third-quarter net loss and $1 million in revenue, but its market cap is valued at over $7 billion, thanks to its stock market performance. As of Sept. 30, the company held nearly $673 million in cash, cash equivalents and short-term investments.”
“The only thing Trump Media has demonstrated they’re good at is selling overvalued equity,” University of Florida finance professor Jay Ritter told the newspaper. “Now, they’ve got this big stockpile of cash, and they’re going to buy an operating business that hopefully will be able to generate revenue and profit.”
President-elect Donald Trump recently launched a new crypto venture called World Liberty Financial.
“World Liberty Financial will have its own crypto token, or ‘stablecoin,’ whose value will be pegged to the value of the U.S. dollar,” USA Today reported in September. “Stablecoins are cryptocurrencies pegged to assets like the dollar to try to maintain a stable price.
The Trump family has been dabbling in crypto for quite some time, including launching a line of NFTs.
In September, Trump said he would make America the “world capital for crypto and bitcoin.”
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