- According to the Financial Times, which cited two persons with knowledge of the situation, Donald Trump’s social media firm Truth Social is apparently in “advanced talks” to purchase the renowned cryptocurrency platform Bakkt.
- Founded in 2018 by NYSE operator Intercontinental Exchange, Bakkt has undergone several pivots due to its inability to acquire traction.
Donald Trump’s social media company Truth Social is reportedly in “advanced talks” to acquire crypto platform Bakkt.
If closed, the all-stock deal would see the president-elect’s Trump Media and Technology Group, which Trump maintains a 53% stake in, purchase the company from the Intercontinental Exchange, the operator of the New York Stock Exchange.
The action is the latest development for the once-famous Atlanta-based Bakkt, which has undergone several rebrandings since its founding in 2018 and reflects Trump’s increasing engagement with the cryptocurrency sector.
Trump has started a number of significant crypto initiatives, including as many NFT series and a DeFi protocol called World Liberty Financial. During his campaign, he raised hundreds of millions of dollars from prominent figures in the cryptocurrency industry. Along with his overt promises to defend and support the blockchain business, the former president also fired Gary Gensler, the blockchain critic in charge of the U.S. Securities and Exchange Commission, and freed Ross Ulbricht, the founder of Silk Road and a hero to many bitcoiners.
Bakkt’s initial CEO, Kelly Loeffler, is currently assisting with the planning of Trump’s inauguration in January after resigning in 2019 to short serve as a Republican U.S. senator from Georgia during the first Trump administration. Jeff Sprecher, the CEO of ICE, is her spouse.
ICE still owns a 55% stake in Bakkt, which it established more than five years ago. In the beginning, the platform failed to gain traction as an institution-grade trading platform for daily physically-settled bitcoin futures contracts.
Bakkt revealed that it was changing its focus to crypto custody and a consumer-focused reward-points business shortly after introducing its initial crypto options products. Bakkt recently stated that it would probably close its custody division.
Before going public through SPAC, Bakkt collected hundreds of millions of dollars from investors such as Microsoft’s M12 venture fund, Galaxy Digital, ICE, and Boston Consulting Group. But it has had trouble turning a profit.
Bakkt used a 1 for 25 reverse stock split in April to save from being delisted from the NYSE. Its stock (ticker: BAKKT) is up 162.37% in post-market trading on Monday after rising 15% last week during the market-wide rally sparked by Trump’s nomination.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
