Trump’s Social Media Company in Talks to Buy Crypto Platform Bakkt
Highlights:
- TMTG is in advanced talks to acquire crypto platform Bakkt, expanding Donald Trump’s crypto market presence.
- Bakkt’s stock surged 162%, while TMTG shares rose 15% following the deal news.
- Trump’s victory boosts the crypto market, with investors hopeful for favorable pro-crypto regulations.
Donald Trump’s social media company, Trump Media and Technology Group (TMTG), which operates Truth Social, is reportedly in “advanced talks” to acquire Bakkt Holdings Inc (BKKT), a cryptocurrency trading firm, according to the Financial Times, which cited two people familiar with the matter. Bakkt, founded by Intercontinental Exchange (owner of the NYSE), is a key player in institutional crypto trading.
JUST IN: 🇺🇸 President-elect Donald Trump's social media company $DJT is in advanced talks to purchase cryptocurrency trading platform Bakkt. pic.twitter.com/36SHzw2elo
— BRICS News (@BRICSinfo) November 18, 2024
TMTG—in which the United States president-elect holds a majority 53% stake—has gained significant attention in the stock market since his election victory on November 5. Despite earning only $2.6 million in revenue this year, TMTG has a $6 billion valuation. It plans to use its stock as currency for the Bakkt acquisition. This deal would further expand Trump’s crypto market presence following his World Liberty Financial promotion.
Crypto platform Bakkt was originally created in 2018 to offer a range of services, including a custody business for holding top digital assets like Bitcoin (BTC) and Ethereum (ETH). However, this part of the business has faced struggles, reporting operating losses of $27,000 and revenues of just $328,000 in the third quarter. As a result, TMTG’s acquisition is expected to exclude Bakkt’s custody operations, which will likely be phased out.
Kelly Loeffler, Bakkt’s inaugural CEO, resigned in 2019 to serve briefly as a Republican U.S. senator from Georgia during Trump’s first administration. Currently, she is involved in organizing his upcoming January inauguration. Loeffler is married to Intercontinental Exchange (ICE) CEO Jeff Sprecher. ICE holds approximately 55% of Bakkt, which has a market capitalization of roughly $150 million.
Trump Deal Drives Bakkt Shares Up 162%
News of the deal sent ripples through the market, propelling shares of both companies. Bakkt’s stock soared over 162% at its peak, triggering several trading halts due to high volatility. TMTG shares surged by 15% within minutes of the announcement.
Trump’s Election Victory Spurs Crypto Surge and Industry Optimism
Following Donald Trump’s 2024 US election victory, the global crypto market cap has surged past $3 trillion, showcasing remarkable bullish momentum and widespread sector gains. Trump’s entry into the crypto space seemed anticipated. His presidency is widely expected to influence the crypto industry significantly, with investors optimistic about his pro-crypto commitments. Many hope his administration will deliver favorable regulations and bolster support for digital assets.
Donald Trump has secured hundreds of millions in campaign funds from crypto leaders and launched several major initiatives in the sector. These include multiple NFT collections and a DeFi protocol named World Liberty Financial.
— WLFI (@worldlibertyfi) October 14, 2024
The former president has also pledged strong support for the blockchain industry. He vowed to dismiss SEC Chair Gary Gensler, known for his critical stance on crypto. Additionally, the former president promised to pardon Ross Ulbricht, the founder of the Silk Road, who is revered by many in the Bitcoin community.
Syed Ali Haider
Syed Ali Haider is a contributing crypto writer for Crypto2Community. He is a crypto and blockchain journalist with over six years of experience. Syed Ali is a Blockchain enthusiast and writer passionate about enhancing the acceptance, adoption, and integration of Blockchain technology worldwide. He has also advocated for digital freedom and cybersecurity for many years. Haider has been featured in a number of high-profile crypto and finance outlets, including Coincult and more.
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