President-elect Donald Trump's media group, Trump Media and Technology Group (TMTG), is reportedly in advanced discussions to acquire Bakkt

The deal would involve an all-share purchase, which is TMTG's move to diversify operations and enter the burgeoning crypto market.

President-elect Donald Trump’s media group, Trump Media and Technology Group (TMTG), is reportedly in advanced talks to acquire Bakkt, the crypto trading platform owned by Intercontinental Exchange (NYSE: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 at 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

Gino Matos

Gino Matos is a law school graduate and a seasoned journalist with six years of experience in the crypto industry. His expertise primarily focuses on the Brazilian blockchain ecosystem and developments in decentralized finance (DeFi).

Assad Jafri

AJ, a passionate journalist since Yemen's 2011 Arab Spring, has honed his skills worldwide for over a decade. Specializing in financial journalism, he now focuses on crypto reporting.

Mercado Bitcoin Launches MBRL Stablecoin on the TRON Blockchain, Pegged to the Brazilian Real

Latest US Stories

Spot Bitcoin ETF options set to debut this week following OCC approval, analysts predict

Bitwise's head of alpha strategies stated that options trading on Bitcoin ETFs could be the “most extraordinary upside ‘vol of vol’ in financial history.”

Goldman Sachs sets sights on standalone blockchain entity for digital assets expansion

Goldman Sachs aims to modernize financial processes with blockchain-focused spin-off for institutional clients.

Crypto funds see $2.2 billion inflow, pushing 2024 total to $33.5 billion

Surging year-to-date inflows highlight growing investor confidence in digital assets post-US elections.

MicroStrategy buys nearly 80,000 BTC in November, outpacing US Bitcoin ETF purchases

The Michael Saylor-led firm now holds more than 330,000 BTC, which valued at around $30 billion.

Latest Bitcoin Stories

Spot Bitcoin ETF options set to debut this week following OCC approval, analysts predict

Bitwise's head of alpha strategies stated that options trading on Bitcoin ETFs could be the “most extraordinary upside ‘vol of vol’ in financial history.”

Goldman Sachs sets sights on standalone blockchain entity for digital assets expansion

Goldman Sachs aims to modernize financial processes with blockchain-focused spin-off for institutional clients.

US elections boosted Bitcoin’s liquidity to new highs

Bitcoin's market depth has been significantly impacted by the US election results, reaching a peak liquidity of $623 million.

Crypto funds see $2.2 billion inflow, pushing 2024 total to $33.5 billion

Surging year-to-date inflows highlight growing investor confidence in digital assets post-US elections.

Latest Press Releases

Web3 Gaming Trailblazer Big Time Studios Announces $OL Token for the OpenLoot Gaming Platform

STEPN apps aim to set a GUINNESS WORLD RECORDS™ title for most users to complete a remote one mile distance in 24 hours

Plutus Announces Platform Enhancements to Bolster Transparency and Sustainability

The above is the detailed content of President-elect Donald Trump's media group, Trump Media and Technology Group (TMTG), is reportedly in advanced discussions to acquire Bakkt. For more information, please follow other related articles on the PHP Chinese website!