President-elect Donald Trump's The media group, Trump Media and Technology Group (TMTG), is reportedly in advanced talks to buy bucketthe digital currency trading platform owned by Intercontinental Exchange (ICE), Financial Times It has been reported On November 18.
According to this report, this deal It includes the purchase of all shareswhich is TMTG's move to diversify its operations and enter the growing digital currency market.
The news sent Bakkt shares up nearly 165% to $29, according to CryptoSlate data.
TMTG is the parent company of Truth Social and has become one of the most volatile and active stocks since Trump won the election. Despite TMTG making only $2.6 million in revenue this year, its stock is worth $6 billion.
Sources familiar with the negotiations told the FT that Bakkt's cryptocurrency custody business was excluded from the proposed deal because it had struggled to gain traction and was expected to fizzle out.
By acquiring Bakkt, TMTG will gain access to a platform aimed at institutional investors, a segment of the market that Bakkt targets with its programmed trading infrastructure.
If finalized, the deal would also expand Trump's growing involvement in the crypto industry, complementing his recently touted crypto investment, Liberty Financial's stablecoin-focused global credit platform.
ICE and Bakkt declined to comment on the matter, and TMTG did not immediately respond to requests for comment.
Bucket fights
Founded by ICE in 2018, Bakkt has faced ongoing challenges to achieve profitability.
Crypto custody business that owns cryptocurrencies such as Bitcoin (Bitcoin) and Ethereum (ETH) for clients reported a minimum revenue of $328,000 and an operating loss of $27,000 in Q3 2023.
Additionally, the company narrowly avoided listing on the New York Stock Exchange earlier this year through a 1-for-25 reverse stock split.
Despite the problems, Buckett's institutional focus and ties to ICE, the owner of the New York Stock Exchange, could provide strategic value to TMTG. Beckett's first CEO, Kelly Loeffleris one of Trump's close allies and the co-chairman of his inauguration committee.
