Donald Trump’s social media company, Truth Social, is reportedly in advanced talks to acquire Bakkt, a cryptocurrency platform with roots in the Intercontinental Exchange (ICE), the parent company of the New York Stock Exchange. According to the Financial Times, Trump Media and Technology Group (TMTG), where Trump holds a 53% stake, is considering an all-stock acquisition deal. This potential transaction reflects a significant pivot in TMTG’s strategy and highlights Trump’s growing interest in blockchain and cryptocurrency.
Bakkt’s Evolution: A Journey Through Challenges
Founded in 2018 by ICE, Bakkt aimed to revolutionize cryptocurrency trading with institutional-grade services, including physically-settled bitcoin futures contracts. Despite its ambitious start and backing from major investors like Microsoft’s M12 and Galaxy Digital, Bakkt struggled to gain traction. Over the years, the Atlanta-based company shifted its focus multiple times, from crypto custody to consumer loyalty rewards, but profitability has remained elusive. In April, Bakkt implemented a 1-for-25 reverse stock split to avoid delisting from the NYSE, a move that momentarily stabilized its market position.
Trump’s Growing Footprint in Crypto
Donald Trump’s involvement in the cryptocurrency sector has steadily expanded. His ventures include NFT launches and the creation of World Liberty Financial, a decentralized finance (DeFi) platform. Trump has also positioned himself as a political ally of the blockchain industry, criticizing regulatory hurdles imposed by figures like SEC Chairman Gary Gensler. Moreover, his campaign rhetoric includes promises to safeguard the crypto sector, and he has hinted at possible clemency for Ross Ulbricht, the controversial founder of the Silk Road marketplace.
The Bakkt Connection: Political and Corporate Ties
The potential acquisition adds an intriguing layer of connection between Trump and Bakkt’s origins. Kelly Loeffler, Bakkt’s first CEO and former U.S. Senator under Trump’s administration, remains closely tied to the platform. Loeffler’s husband, ICE CEO Jeff Sprecher, still oversees ICE’s 55% stake in Bakkt, emphasizing the deep ties between these entities.
A Market Boost Fueled by Trump’s Influence
Recent developments have boosted Bakkt’s stock performance, with shares surging 162.37% in after-hours trading on Monday. This rally aligns with Trump’s increasing political momentum, suggesting a correlation between his influence and market confidence. Should the deal proceed, it would mark a transformative moment for both Truth Social and Bakkt, potentially revitalizing the latter’s position in the crypto landscape.
What’s Next?
For TMTG, acquiring Bakkt could signify a strategic expansion into blockchain and cryptocurrency, areas where Trump has shown both personal and professional interest. As Bakkt continues to navigate its challenges, this partnership could offer the platform a chance to regain relevance while solidifying Trump’s presence in the digital economy. The coming weeks will reveal whether this deal materializes and how it could reshape both entities’ futures.
