Nikolas Sargeant
Shares of cryptocurrency exchange Bakkt skyrocketed on November 18 following reports that Trump Media & Technology Group is in advanced negotiations to acquire the company. The stock surged 162.5% to close at $29.71, with after-hours trading pushing it further to $34.59.
According to the Financial Times, Trump Media, where the president-elect holds a 53% majority stake, is discussing an all-share purchase of the Intercontinental Exchange-owned Bakkt. While Trump Media saw a 16.6% increase, it declined 3.5% after hours.
The potential acquisition aligns with Trump's pro-cryptocurrency campaign promises, including building a strategic Bitcoin reserve and reducing regulatory barriers. Since his election victory, crypto markets have responded positively, with Bitcoin gaining approximately 30%.
The deal's value remains undisclosed, though Bakkt's market capitalization now exceeds $400 million despite its ongoing profitability challenges. The company's struggling crypto-custody business would reportedly be excluded from the acquisition.
Some analysts speculate this could be Trump's strategy to establish a Bitcoin reserve without congressional approval. Financial journalist Izabella Kaminska suggests Trump Media could use Bakkt as a special purpose vehicle (SPV) to accumulate Bitcoin and potentially transfer gains to the government.
Neither Intercontinental Exchange, Trump Media, nor Bakkt has officially commented on the reported negotiations.
Market observers note this potential acquisition could significantly reshape the cryptocurrency landscape under Trump's presidency. The move would not only give Trump Media direct access to crypto infrastructure but could also position the company as a key player in implementing the administration's digital asset strategy.
Some industry experts suggest this could accelerate mainstream adoption of cryptocurrencies, particularly if it leads to the establishment of the promised strategic Bitcoin reserve.
