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This is an excerpt from the Forward Guidance Newsletter. Subscribe to the newsletter for full editions.
Shares of Donald Trump’s social media company, Trump Media & Technology, continued to fluctuate Tuesday following a rally spurred by reports that the president-elect is furthering his crypto business interests.
The Financial Times reported that Trump Media has been infiltrated by the Financial Times. “advanced talks” to acquire crypto exchange Bakkt — a company founded and owned by New York Stock Exchange parent company Intercontinental Exchange (ICE).
News pushed Bakkt’s shares 162% higher on Monday, while Trump Media (ticker: DJT) saw a 17% increase. Bakkt maintained its rally through Tuesday, trading 7% higher at the halfway point of the session. DJT dropped more than 8 percent.
After a merger with Digital World Acquisition Corp., the social media company started trading on Nasdaq in spring last year. DTJ shares have risen almost 150% in value since their September low. However, they are still about 40% away from their IPO of $50.
Trump Media’s recent growth has not been linear. The shares rose by 65% towards the end of October. This rally was attributed to the increased optimism that Trump would win. Since Trump’s election, the share price has remained flat. It posted a modest gain the day following the election but then erased gains.
Markets are, presumably, confused over what Trump’s win will mean for the social media firm. The increase in price yesterday indicates that investors are fairly confident that buying Bakkt is a smart move. The subsequent decline shows that investors aren’t sure exactly why.
We will follow the story of the acquisition and write a lot about what it means for the majority shareholder to move into the White House. Stay tuned.
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