Trump Media & Technology Group (TMTG), the parent company of the Truth Social app, is reportedly in advanced discussions to acquire cryptocurrency trading platform Bakkt. The Financial Times, citing sources familiar with the negotiations, reported the potential acquisition on Monday, sending shares of both companies skyrocketing.
TMTG, a company majority-owned by President-elect Donald Trump, saw its stock surge by over 16% following the news, closing sharply higher on the Nasdaq under the ticker DJT. Bakkt, a cryptocurrency platform originally launched by Intercontinental Exchange (ICE), the owner of the New York Stock Exchange, witnessed its shares soar by more than 162%. Trading of Bakkt’s stock was halted multiple times due to extreme volatility.
The reported acquisition comes as Trump Media continues to attract market attention ahead of the 2024 presidential election. Despite reporting a net loss of $363 million against a modest $2.6 million in revenue so far this year, the company maintains a robust market capitalization exceeding $7 billion. Trump Media also reported cash reserves of nearly $673 million in its third-quarter earnings.
Bakkt, based in Alpharetta, Georgia, was founded in 2018 to provide technology solutions for cryptocurrency investors. Despite generating $328.4 million in total revenue during its latest fiscal quarter, the company reported an operating loss of $27.4 million, reflecting a 48% improvement from the previous year. However, Bakkt has faced financial challenges, including a warning from the New York Stock Exchange in March regarding potential delisting due to its stock trading below the $1 per share threshold for over 30 consecutive trading days. In April, the company executed a reverse stock split at a 1-for-25 ratio to stabilize its share price.
Kelly Loeffler, a former CEO of Bakkt and the wife of ICE CEO Jeffrey Sprecher, previously served as co-chair of Donald Trump’s inauguration committee. Loeffler departed Bakkt in 2019 when she was appointed to the U.S. Senate by Georgia Governor Brian Kemp. She lost her Senate seat to Democratic Senator Raphael Warnock in a special election runoff.
The potential acquisition also signals Donald Trump’s increasing involvement in the cryptocurrency sector. Weeks before the 2024 presidential election, Donald Trump endorsed World Liberty Financial, a new crypto venture, which reportedly allocates 75% of its net coin revenue to Donald Trump and his family.
While Bakkt’s financial stability remains uncertain, the company insists it has sufficient capital to operate for at least 12 months. However, it acknowledged potential risks to its viability, warning shareholders of the possibility of losing their investments if conditions deteriorate.
As speculation around the acquisition grows, neither Trump Media nor Bakkt has issued an official comment. If finalized, the deal could mark a significant expansion of Donald Trump’s business ventures into the volatile but lucrative cryptocurrency market.
