Trump Media in Talks to Acquire Bakkt

Donald Trump’s social media company, Truth Social, is reportedly in advanced talks to acquire crypto platform Bakkt, according to the Financial Times.

If finalized, the all-stock deal allows Trump Media and Technology Group (with Trump owning a 53% stake) to purchase the company from Intercontinental Exchange (ICE), the operator of the New York Stock Exchange.

This represents Trump’s increasing involvement in the crypto industry and marks another chapter for Bakkt, which has undergone multiple transformations since its inception in 2018.

Trump has raised hundreds of millions from crypto investors during his campaign and initiated several significant crypto projects, including multiple NFT series and a DeFi protocol called World Liberty Financial. He also pledged to support the blockchain sector by contemplating the dismissal of SEC chair Gary Gensler and advocating for the release of Silk Road founder Ross Ulbricht.

Kelly Loeffler, Bakkt's first CEO, resigned in 2019 to serve as a Republican U.S. senator from Georgia and is now aiding in planning Trump’s inauguration in January. She is married to ICE CEO Jeff Sprecher.

Founded over five years ago, ICE holds a 55% stake in Bakkt, initially envisioned as a premium trading platform for daily physically-settled bitcoin futures. However, it struggled upon launch.

Following a pivot towards crypto custody and a consumer-focused reward-points model after initial challenges, Bakkt recently indicated a likely phase-out of its custody services.

Before going public via SPAC, Bakkt secured substantial investments from major players including Boston Consulting Group, Galaxy Digital, ICE, and Microsoft's M12 fund, yet it has faced profitability hurdles.

In April, Bakkt executed a 1 for 25 reverse stock split to avoid delisting from NYSE. Shares of Bakkt (ticker: BAKKT) surged 15% amid a market rally influenced by Trump’s nomination and have risen 162.37% in post-market trading on Monday.

Editor's note (Nov. 18, 2024 — 17:00 UTC): Updates with post-market close stock price.