Trump Media Expands Crypto Ambitions with Bakkt Acquisition Talks

Donald Trump’s Media and Technology Group (TMTG), the operator of Truth Social, is reportedly nearing an all-stock deal to acquire Bakkt, a cryptocurrency trading platform owned by Intercontinental Exchange (ICE). The potential acquisition underscores TMTG's intent to diversify beyond social media and capitalize on the cryptocurrency boom sparked by Trump’s presidential victory.

—

News of the negotiations triggered a frenzy in the markets. Bakkt's stock price soared 162% on Monday, pushing its market value to over $400 million, and climbed another 33% in Tuesday's premarket trading, hitting nearly $40 per share. By late morning, it was trading at $36, marking an almost 250% increase since the news broke. Meanwhile, TMTG’s shares jumped 17% on Monday but dipped 6% on Tuesday.

The crypto market has also rallied. Bitcoin surged over 30% post-election, fueled by speculation that Trump’s administration would enact favorable crypto regulations. Bakkt’s CEO Andy Main highlighted a dramatic increase in trading volumes, which exceeded $279 million by mid-November, up from $165 million in October.

Strategic Leap for TMTG

TMTG, valued at $6 billion despite generating just $2.6 million in revenue in the first nine months of 2024, plans to leverage its equity valuation to fund the acquisition. While Bakkt has struggled with profitability, losing $27,000 from $328,000 in Q3 revenue, its focus on institutional trading and a regulatory license from New York position it as a strategic asset. However, its crypto custody business, which has failed to gain traction, is expected to be excluded from the deal.

Bakkt’s history intertwines with Trump’s political circle. Its first CEO, Kelly Loeffler, is a Republican former senator from Georgia and co-chair of Trump's upcoming inauguration committee. Her husband, Jeff Sprecher, is the founder and CEO of ICE, which still holds a 55% stake in Bakkt.
Though Truth Social’s user base remains small, averaging 646,000 daily visits compared to 155 million for Elon Musk’s X, the platform has become a trading favorite among retail investors.
Trump's 53% stake in TMTG accounts for more than half of his $5.7 billion wealth, emphasizing the high stakes for his media empire's growth.

Industry Implications

This deal could mark a significant pivot for TMTG, aligning it with a rapidly growing sector and allowing it to capitalize on Bakkt’s institutional trading ambitions. With crypto markets surging and favorable regulatory sentiment on the horizon, the acquisition has the potential to solidify Trump Media’s position as a key player in the crypto and Web3 ecosystem.