Trump Media Group in Advanced Talks to Acquire Crypto Platform Bakkt

TLDR

• Trump Media and Technology Group (TMTG) is in advanced talks to acquire crypto platform Bakkt
• Bakkt’s shares surged 160% following the acquisition news
• Deal excludes Bakkt’s crypto custody business
• All-stock deal values Bakkt at approximately $150 million
• Acquisition follows Trump’s recent promotion of World Liberty Financial

Trump Media and Technology Group (TMTG), the company behind Truth Social, has entered advanced discussions to acquire cryptocurrency trading platform Bakkt, according to reports from the Financial Times. The news sparked immediate market reaction, with Bakkt’s shares jumping 160% during Monday’s trading session.

The proposed deal would be structured as an all-stock transaction, with TMTG absorbing Bakkt into its operations. Currently, Bakkt’s market capitalization stands at approximately $150 million, while TMTG maintains a $6 billion equity valuation despite generating minimal revenue.

Bakkt, originally established by Intercontinental Exchange (ICE), which owns the New York Stock Exchange, began with ambitious plans to integrate cryptocurrency payments into everyday commerce. The platform initially aimed to enable Starbucks customers to purchase coffee using bitcoin, though this vision never fully materialized.

The company’s journey has been marked by various transitions. Under its first CEO, future U.S. Senator Kelly Loeffler, Bakkt launched a digital wallet in 2021. However, this service was discontinued the following year as the company shifted its focus toward crypto custody and trading services.

Recent financial disclosures from Bakkt have revealed challenges. In February, the company reported insufficient cash reserves to fund a full year of operations, highlighting the struggles faced by many crypto-focused businesses during market downturns.

The proposed acquisition excludes Bakkt’s crypto custody business, which handles digital assets like bitcoin and ether. This separation suggests TMTG’s interest lies primarily in Bakkt’s trading infrastructure rather than its asset management capabilities.

The timing of the acquisition talks coincides with Trump’s increased involvement in the cryptocurrency space. Recently, Trump promoted World Liberty Financial, a decentralized finance platform with connections to the Trump family.

Market conditions have shown improvement during these developments, with bitcoin experiencing a 30% increase in value over the past month. This uptick follows Trump’s recent election victory, which has corresponded with renewed interest in cryptocurrency markets.

The Wall Street Journal has reported that President-elect Trump plans to meet with Coinbase CEO Brian Armstrong, further indicating increased attention to the cryptocurrency sector from Trump’s circle.

Trading activity surrounding the acquisition news has been intense. Multiple trading halts were implemented to manage market volatility as investors responded to the announcement. TMTG shares also reflected market enthusiasm, closing with a 16.7% gain.

The deal represents a potential merger of social media influence with cryptocurrency trading capabilities. TMTG, which positions itself as an alternative to mainstream social networks, appears to be diversifying its technological portfolio through this acquisition.

Bakkt’s evolution from its initial concept to its current form reflects broader changes in the cryptocurrency industry. Originally conceived as a consumer-focused payment platform, it has adapted to serve more specialized trading and custody functions.

The proposed acquisition comes at a time of increasing mainstream acceptance of cryptocurrency trading. Bakkt’s established relationships with traditional financial institutions, through its ICE ownership, could provide TMTG with valuable infrastructure and industry connections.

Multiple trading halts were necessary throughout Monday’s session as market participants digested the news. The extreme price movement in Bakkt shares demonstrates the market’s strong reaction to the potential combination of these two companies.

The deal’s structure as an all-stock transaction reflects current market conditions and company valuations. This arrangement would allow TMTG to leverage its higher market capitalization while giving Bakkt shareholders potential upside through equity ownership in the combined entity.