Trump’s media company is expanding into the cryptocurrency market.
Bakkt’s crypto custody business will not be part of the acquisition.
The deal deepens Trump’s involvement in crypto after promoting World Liberty Financial.
Trump Media and Technology Group (TMTG), the parent company of Truth Social, is in advanced discussions to acquire the crypto trading platform Bakkt, according to a report from the Financial Times.
The potential all-stock deal would see TMTG absorb Bakkt, whose market capitalization stood at just over $150 million on Monday. TMTG, despite minimal revenue, boasts a $6 billion equity valuation fueled by retail investor interest following Trump’s re-election.
Bakkt was set up by Intercontinental Exchange, which owns large derivatives exchanges, plus the NYSE, with the initial goal of helping Starbucks customers buy coffee with bitcoin (BTC).
Future U.S. Senator Kelly Loeffler was its first CEO. It finally introduced a digital wallet in 2021, which was discontinued last year. Bakkt is now focused on crypto custody and trading services. In February, Bakkt said it did not have cash in hand to fund even 12 months of the operation.
Shares of Bakkt Holdings Inc (BKKT) ended up jumping 160% on Monday following the report.
Talks of the acquisition follow Trump’s recent promotion of World Liberty Financial, a DeFi platform tied to the Trump family. A deal could impact Bakkt’s future direction and potential role within Trump’s expanding media empire, including its focus on bitcoin.
As such, Bakkt’s crypto custody business, which holds digital assets like bitcoin and ether, has struggled and will be excluded from the acquisition. The move comes amid a surge in crypto markets following Trump’s victory, with bitcoin up over 30% in the past 30 days.
On a separate note, the Wall Street Journal reported that President-elect Trump is planning on meeting Coinbase CEO Brian Armstrong.