DJT Stock Falls. Why a Trump Media and Crypto Combo Is Just What’s Needed
Trump Media & Technology stock slipped early Tuesday after jumping in the previous session on a report that the company is in talks to buy crypto trading platform Bakkt.
The Truth Social parent’s stock has remained volatile after Donald Trump’s election win.
A deal would expand President-elect Donald Trump’s crypto interests—he launched his own cryptocurrency venture in September—a platform called World Liberty Financial.
The Truth Social parent’s shares, trading under the ticker DJT, surged 17% Monday but were 7.7% lower at $30.25 ahead of the open Tuesday, highlighting the volatility of the stock. Investors have appeared unsure over the future of DJT stock after Donald Trump’s election win.
The theme seems to be continuing. The market thinks a deal for Bakkt is positive, but it’s not quite sure to what extent. Even after Monday’s gain, the stock sits below its election day close of $33.94. Throughout the campaign, the shares were seen as a proxy for the billionaire’s chance of returning to the White House.
Bakkt’s shares were up 13% in premarket trading after soaring 162% Monday. Trump’s social media company is close to an all-stock acquisition of Bakkt, the Financial Times reported Monday. Bakkt was founded by NYSE parent Intercontinental Exchange (ICE) in 2018.
The president-elect’s victory earlier this month has provided a major boost for cryptocurrencies and the broader crypto sector. During the campaign, Trump promised to make the U.S. the crypto capital of the world. Expectations that he will ease regulation on the industry have helped supercharge gains since the election.
The price of Bitcoin has rallied strongly since Nov.5, reaching an all-time high above $93,000 last week from just below $70,000 on election day. The world’s largest cryptocurrency was trading flat at $91,821 Tuesday.
Bakkt said it was aware of the rumors but added it was the company’s policy not to comment on market rumors or speculation, in a statement Tuesday.
Trump Media & Technology Group did not respond to request for comment, while ICE declined to comment.
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