President-elect Donald Trump’s media group, Trump Media and Technology Group (TMTG), is reportedly in advanced discussions to acquire Bakkt, the crypto trading platform owned by Intercontinental Exchange (ICE). The all-share purchase deal would be TMTG’s move to diversify operations and enter the burgeoning crypto market. The news caused Bakkt’s share price to surge roughly 165% to $29 as of press time, based on CryptoSlate data. TMTG, the parent company of Truth Social, has become one of the most volatile and actively traded stocks since Trump’s election victory, commanding a $6 billion equity valuation despite generating just $2.6 million in revenue this year.
Sources familiar with the talks told the Financial Times that Bakkt’s struggling crypto custody business is excluded from the proposed deal, as it has had difficulty gaining traction and was expected to be wound down. By acquiring Bakkt, TMTG would gain access to a platform aimed at institutional investors, a market segment that Bakkt targets with its planned trading infrastructure. This potential acquisition would expand Trump’s growing involvement in the crypto industry, complementing his recently promoted crypto venture, the stablecoin-focused credit platform World Liberty Financial.
ICE and Bakkt declined to comment on the matter, while TMTG did not immediately respond to requests for comment. Bakkt, founded by ICE in 2018, has faced challenges in achieving profitability, particularly with its crypto custody business. In the third quarter of 2023, this business reported minimal revenues of $328,000 and operating losses of $27,000. Additionally, the company narrowly avoided delisting from the New York Stock Exchange earlier this year through a 1-for-25 reverse stock split.
Despite its struggles, Bakkt’s institutional focus and ties to ICE, the owner of the New York Stock Exchange, could offer strategic value to TMTG. The company’s first CEO, Kelly Loeffler, is a close ally of Trump and co-chair of his inauguration committee. If the acquisition is finalized, it would mark a significant move for TMTG into the crypto market and further solidify Trump’s presence in the industry. This potential deal showcases the continued growth and interest in the crypto industry, as established companies seek to enter the space and expand their offerings to institutional investors.
Overall, the acquisition of Bakkt by TMTG represents a significant development in the crypto market, demonstrating the growing interest of established companies in expanding their operations to include crypto trading platforms. Despite Bakkt’s struggles in achieving profitability, its focus on institutional investors and ties to ICE could provide strategic value to TMTG. This move would further establish Trump’s presence in the crypto industry, complementing his recent venture into stablecoin-focused credit platforms. If this deal is finalized, it could pave the way for further growth and expansion in the crypto market, as more traditional companies look to enter the space and capitalize on its potential.
