Trump Media & Technology Group’s Stock Performance and Potential Bakkt Acquisition
Trump Media & Technology Group’s Stock Performance and Potential Bakkt Acquisition
Trump Media & Technology Group (TMTG), the parent company of Truth Social and majority-owned by former President Donald Trump, has experienced significant stock price fluctuations. In March, following a merger with Digital World Acquisition Corporation, TMTG’s peak valuation reached an estimated $6 billion, reflecting Trump’s then-high poll numbers in the 2024 presidential race. Trump’s stake at that time was approximately 115 million shares, representing roughly 60% ownership.
As of Wednesday, the stock price had fallen to $16.98, a 74% decrease from its March high. This decline correlates with a decrease in Trump’s standing in the polls. The value of Trump’s stake is now estimated at $2 billion. A contractual lockup preventing Trump and other shareholders from selling their shares expires on September 19, 2024. TMTG reported a net loss of $363 million on revenue of $2.6 million in the current year. First-quarter 2025 revenue from Truth Social, its social media platform, was $821,200, a 7% increase year-over-year. The company also offers a streaming video product, Truth+, and a financial offering, Truth.Fi, neither of which generated revenue in the first quarter.
TMTG’s financial statements have been flagged for “material weakness in internal controls over financial reporting,” and the company acknowledges a lack of sufficient accounting personnel experienced in SEC reporting regulations. Total assets at the end of Q1 were $918.9 million, with total liabilities of $27.2 million, and a cash reserve of $759 million. Approximately 93% of TMTG’s revenue comes from a single customer, creating significant financial risk.
Reports indicate that TMTG is in advanced talks to acquire Bakkt, a cryptocurrency trading platform founded in 2018 and based in Alpharetta, Georgia. Bakkt, a subsidiary of Intercontinental Exchange (owner of the New York Stock Exchange), reported revenue of $328.4 million with an operating loss of $27.4 million. The reported interest in Bakkt led to a 16% increase in TMTG’s share price and a more than 162% increase in Bakkt’s stock price. Kelly Loeffler, former CEO of Bakkt, currently serves as co-chair of Trump’s inauguration committee.
The potential acquisition of Bakkt represents a further development in Trump’s ventures in the cryptocurrency space. Previous ventures include the launch of a non-fungible token (NFT) trading card collection in 2022, which sold out within 24 hours, and the preview of a Trump-branded cryptocurrency through World Liberty Financial in October 2024.
In summary, TMTG’s stock price has experienced a dramatic decline since its peak earlier this year, coinciding with a decrease in Trump’s political standing. The company faces financial challenges, including significant losses, reliance on a single customer for the majority of its revenue, and concerns regarding the accuracy of its financial reporting. The potential acquisition of Bakkt represents a significant development for the company, but the ultimate outcome remains uncertain.
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