Trump Media, the parent company of the Truth Social app, is in “advanced talks” to acquire cryptocurrency trading company Bakkt, according to a Financial Times report. The news has caused the share prices of both companies to skyrocket. Trump Media shares rose more than 16%, reflecting growing investor interest in its potential cryptocurrency projects.
Despite a net loss of $363 million for the year on just $2.6 million in revenue, Trump Media's market capitalization remains above $7 billion, driven largely by speculation surrounding the 2024 US presidential election and retail investors betting on Trump's political prospects. The company has nearly $673 million in cash, positioning it for strategic investments, including its potential acquisition of Bakkt.
Bakkt, founded in 2018, has struggled financially but reported improvements in its latest fiscal quarter, with a 48% reduction in operating losses. However, it has warned that it could face significant financial difficulties in the future.
The reported acquisition could mark Trump Media's deepest entry into the cryptocurrency sector, a space it has been exploring with other companies, such as the World Liberty Financial token. This strategic move could improve Trump Media's diversification and financial position, especially as it looks to expand its business interests ahead of the 2025 presidential election.
Stock Analysis: Trump Media & technology Group Corp. (DJT)
The 15-minute chart of Trump Media & technology Group Corp. (DJT) reveals a strong bullish rise, reflecting the market's optimism following the recent news. The stock opened strongly and rose significantly, hitting a session high of $33.88 before consolidating around $32.81, marking a 1.08% gain on the day.
This rally began after a breakout of the $27.00-$28.00 resistance zone, which had acted as a limit to the price action over the past few sessions. The bullish momentum was accompanied by a sharp rise in the Relative Strength Index (RSI), which currently stands at 88.37, indicating that the stock is in overbought territory. This suggests that while the current uptrend is strong, some pullback or consolidation is possible in the near term as traders take profits.
Key support levels to monitor are $30.00 and $28.00, which could provide a base for action if the price pulls back. On the upside, immediate resistance is at $34.00. A break above this level could push the stock towards the $36.00 mark.
Overall, the stock shows strong bullish sentiment driven by positive news catalysts. However, traders should be cautious of the overbought RSI and keep an eye on volume trends to confirm sustained momentum or possible corrections.
!function (f, b, e, v, n, t, s) {
if (f.fbq) return;
n = f.fbq = function () {
n.callMethod ?
n.callMethod.apply(n, arguments) : n.queue.push(arguments)
};
if (!f._fbq) f._fbq = n;
n.push = n;
n.loaded = !0;
n.version = ‘2.0’;
n.queue = ();
t = b.createElement(e);
t.async = !0;
t.src = v;
s = b.getElementsByTagName(e)(0);
s.parentNode.insertBefore(t, s)
}(window, document, ‘script’,
‘https://connect.facebook.net/en_US/fbevents.js’);
fbq(‘init’, ‘504526293689977’);
fbq(‘track’, ‘PageView’);
