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

President-elect Donald Trump’s media group, Trump Media and Technology Group (TMTG), is reportedly successful precocious discussions to get Bakkt, the crypto trading level owned by Intercontinental Exchange (ICE), the Financial Times reported connected Nov. 18.

According to the report, the deal would impact an all-share purchase, which is TMTG’s determination to diversify operations and participate the burgeoning crypto market.

The quality caused Bakkt’s stock terms to surge astir 165% to $29 arsenic of property time, based connected CryptoSlate data.

TMTG is the genitor institution of Truth Social and has go 1 of the astir volatile and actively traded stocks since Trump’s predetermination victory. Despite generating conscionable $2.6 cardinal successful gross this year, TMTG commands a $6 cardinal equity valuation. 

Sources acquainted with the talks told the FT that Bakkt’s crypto custody concern is excluded from the projected woody since it has struggled to summation traction and was expected to beryllium coiled down.  

By acquiring Bakkt, TMTG would summation entree to a level aimed astatine organization investors, a marketplace conception Bakkt targets with its planned trading infrastructure. 

If finalized, the woody would besides grow Trump’s increasing engagement successful the crypto industry, complementing his precocious promoted crypto venture, the stablecoin-focused recognition level World Liberty Financial.  

ICE and Bakkt declined to remark connected the matter, and TMTG did not instantly respond to requests for comment.  

Bakkt’s struggles

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

Its crypto custody business, which holds crypto specified arsenic Bitcoin (BTC) and Ethereum (ETH) for customers, reported minimal revenues of $328,000 and operating losses of $27,000 successful the 3rd 4th of 2023. 

Additionally, the institution narrowly avoided delisting from the New York Stock Exchange earlier this twelvemonth done a 1-for-25 reverse banal split.  

Despite its struggles, Bakkt’s organization absorption and ties to ICE, the New York Stock Exchange owner, could connection strategical worth to TMTG. Bakkt’s archetypal CEO, Kelly Loeffler, is simply a adjacent Trump state and co-chair of his inauguration committee.

The station Trump Media Group successful talks to get crypto trading level Bakkt – FT appeared archetypal connected CryptoSlate.