Trump Media Group in talks to acquire crypto trading platform Bakkt – FT

If concluded, the deal would wind down Bakkt's custody services, which have been struggling to gain traction.

Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.

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 Financial Times reported on Nov. 18.

According to the report, the deal would involve an all-share purchase, which is 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 is the parent company of Truth Social and has become one of the most volatile and actively traded stocks since Trump’s election victory. Despite generating just $2.6 million in revenue this year, TMTG commands a $6 billion equity valuation. 

Sources familiar with the talks told the FT that Bakkt’s crypto custody business is excluded from the proposed deal since it has struggled to gain 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 Bakkt targets with its planned trading infrastructure. 

If finalized, the deal would also 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, and TMTG did not immediately respond to requests for comment.  

Bakkt’s struggles

Bakkt, founded by ICE in 2018, has faced persistent challenges in achieving profitability.

Its crypto custody business, which holds crypto such as Bitcoin (BTC) and Ethereum (ETH) for customers, reported minimal revenues of $328,000 and operating losses of $27,000 in the third quarter of 2023. 

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 New York Stock Exchange owner, could offer strategic value to TMTG. Bakkt’s first CEO, Kelly Loeffler, is a close Trump ally and co-chair of his inauguration committee.

Mentioned in this article