Trump Expands Crypto Business Portfolio, Plans to Acquire Cryptocurrency Exchange Bakkt
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Trump Expands Crypto Business Portfolio, Plans to Acquire Cryptocurrency Exchange Bakkt
Since its launch, Bakkt has delivered lackluster performance and once faced the threat of delisting.
Navigating Web3 tides with focused insightsAuthor: BitpushNews
As Donald Trump prepares to move into the White House around January 20, 2025, he continues to expand his footprint in the cryptocurrency sector.
According to the Financial Times, Trump Media & Technology Group, the social media company owned by Donald Trump, is engaged in advanced talks to acquire cryptocurrency platform Bakkt.
The deal would see Trump Media fully acquire Bakkt, with Trump committing to retain a 53% stake, according to two people familiar with the discussions. The valuation and financial terms have not been disclosed.
The news triggered sharp gains in both companies' stock prices.
Trump Media (Nasdaq: DJT), in which Trump holds a majority stake, surged more than ten percent within minutes of the report's publication. The company, which operates the Truth Social app, closed up over 16%. Bakkt, experiencing multiple trading halts due to extreme volatility, finished the day up more than 163%.
Lackluster Performance, Once on the Brink of Delisting
Bakkt was launched by Intercontinental Exchange (ICE) in 2018 and went public in October 2021, offering technology services for cryptocurrency investors. Prior to its SPAC listing, Bakkt had raised hundreds of millions of dollars from investors including Boston Consulting Group, Galaxy Digital, ICE, and Microsoft’s M12 venture fund. However, it has struggled to achieve profitability. In its most recent fiscal quarter, the company reported total revenue of $328.4 million and an operating loss of $27.4 million—48% lower than the same period last year.
Trump’s ties to Bakkt run deep: Kelly Loeffler, former CEO of Bakkt, served as co-chair of Trump’s presidential inauguration committee.
Loeffler’s husband, Jeffrey Sprecher, is the CEO of Intercontinental Exchange. In 2019, Georgia Governor Brian Kemp appointed Loeffler to fill the U.S. Senate seat vacated by Johnny Isakson due to health reasons, prompting her resignation from Bakkt’s executive team. However, she lost the subsequent special election runoff to Democratic Senator Raphael Warnock.
Bakkt previously announced that it might shut down its cryptocurrency custody business, which holds regulatory approval from New York authorities. People familiar with the TMTG negotiations said this segment would not be included in the transaction. During the three months ended September 30, the custody unit generated $328,000 in revenue and suffered an operating loss of $27,000.
Due to persistently low share prices, Bakkt faced the risk of delisting from the New York Stock Exchange until it executed a 1-for-25 reverse stock split in April. Last week, its shares rose 15%.
Expanding Crypto Ambitions: Market Hype Outpaces Fundamentals
The Trump family’s push into the cryptocurrency market is accelerating. Their crypto venture World Liberty Financial, launched in September, along with numerous digital asset-related promises made during Trump’s campaign—including proposals to establish a national Bitcoin strategic reserve, foster a mining-friendly environment, and replace the SEC chair—highlight Trump’s growing affinity for the crypto industry.
This sentiment has translated directly into market movements. Following Trump’s election victory, retail investor enthusiasm and optimism over potential pro-crypto policies under a Trump administration have driven significant volatility in shares of TMTG, the parent company of Truth Social. The stock swung by billions of dollars in value in the run-up to the election and has become one of the most actively traded stocks in the U.S. market. Yet, TMTG reported only $2.6 million in revenue this year, with a net loss of $363 million, while its equity valuation exceeds $7 billion.
Truth Social also maintains a relatively small user base. According to Similarweb, the platform averaged around 646,000 daily visits this month, compared to 155 million daily visits on X, Elon Musk’s social media platform.
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