Trump Media in Talks to Acquire Crypto Firm Bakkt

Trump Media Group Eyes $150M Crypto Platform Acquisition

Trump Media and Technology Group (TMTG), the parent company of Truth Social, is in advanced talks to acquire Bakkt Holdings, a crypto trading platform initially developed by the owner of the New York Stock Exchange. The all-stock deal values Bakkt at $150 million, aiming to merge it with TMTG, which holds a $6 billion equity valuation driven largely by retail investor enthusiasm following Donald Trumps re-election.

The acquisition highlights Trump Media's growing interest in the crypto space, with former President Donald Trump recently promoting World Liberty Financial, a DeFi platform linked to his family, and engaging with key crypto industry figures like Coinbase CEO Brian Armstrong.

Bakkt's Struggles and Strategic Pivot

Bakkt, founded in 2018, originally allowed customers to buy Starbucks coffee with Bitcoin but later shifted its focus to crypto custody and trading services. Despite reporting a 2023 revenue surge to $780 million, the company faced a net loss of $226 million. This year, Bakkt also saw a 49% reduction in notional traded volume due to reduced industry activity.

The proposed deal reportedly excludes Bakkts struggling crypto custody business. Earlier this year, the New York Stock Exchange warned Bakkt of potential delisting due to its stock price dipping below $1.00 per share for over 30 days.

Stock Surge and Future Prospects

News of the acquisition caused Bakkt's shares to skyrocket by 160%. The company remains optimistic, projecting up to $5.1 billion in 2024 revenue—a staggering 555% year-over-year increase. However, anticipated costs tied to its crypto operations could offset these gains.

Since going public in October 2021, Bakkt has posted nine consecutive quarters of net losses. In 2023, the firm delisted 25 of the 36 crypto tokens on its Apex Crypto trading platform, aligning with industry trends and regulatory challenges.

If finalized, the deal could bolster TMTG's foothold in the crypto sector, leveraging Bakkts infrastructure to expand beyond its social media roots. Both companies, however, face significant financial and regulatory hurdles as they navigate this potential partnership.