After a big rise the day before, Trump Media & Technology Group Corp. stock fell more than 10% on Tuesday. The company is the parent of President-elect Donald Trump’s Truth Social media platform.
Before the day, the stock had gone up about 17% after news came out that Trump Media DJT -6.57% was close to making a deal to buy Bakkt Holdings Inc. BKKT 16.80%, a company that works with cryptocurrencies.
On Tuesday, Bakkt said in a statement that it “does not comment on market rumors or speculation.”
Trump Media is in the business of running a social media company, but in its most recent quarter, it only made about $1 million.
With a market value of more than $7 billion and cash on hand worth almost $700 million, the company has plenty of money to make deals.
Bakkt Holdings, on the other hand, has a market cap of $406 million, even though its stock price went up 8% on Tuesday and a huge 162% the day before, when news of the deal with DJT first came out.
Bakkt lost $2.9 million, or 45 cents per share, in the third quarter. This was down from $17.3 million, or $4.74 per share, in the same quarter last year.
It made $328.4 million in the third quarter, up from $204.8 million in the second quarter.
Trump, on the other hand, has been supporting bitcoin, and he even has his own digital currency business called World Liberty Financial.
The Nasdaq Composite Index COMP was up by 0.38% at just before 11 a.m. Eastern on Tuesday. The Dow Jones Industrial Average DJIA -0.47% and the S&P 500 SPX 0.00% were both slightly down.
