President-elect Donald Trump’s media group, Trump Media and Know-how Group (TMTG), is reportedly in superior discussions to accumulate Bakkt, the crypto buying and selling platform owned by Intercontinental Alternate (ICE), the Monetary Instances reported on Nov. 18.
Based on the report, the deal would contain an all-share buy, which is TMTG’s transfer to diversify operations and enter the burgeoning crypto market.
The information prompted Bakkt’s share value to surge roughly 165% to $29 as of press time, based mostly on CryptoSlate information.
TMTG is the mum or dad firm of Reality Social and has change into probably the most unstable and actively traded shares since Trump’s election victory. Regardless of producing simply $2.6 million in income this yr, TMTG instructions a $6 billion fairness valuation.
Sources acquainted with the talks instructed the FT that Bakkt’s crypto custody enterprise is excluded from the proposed deal because it has struggled to realize traction and was anticipated to be wound down.
By buying Bakkt, TMTG would achieve entry to a platform aimed toward institutional traders, a market phase Bakkt targets with its deliberate buying and selling infrastructure.
If finalized, the deal would additionally increase Trump’s rising involvement within the crypto business, complementing his lately promoted crypto enterprise, the stablecoin-focused credit score platform World Liberty Monetary.
ICE and Bakkt declined to touch upon the matter, and TMTG didn’t instantly reply to requests for remark.
Bakkt’s struggles
Bakkt, based by ICE in 2018, has confronted persistent challenges in attaining profitability.
Its crypto custody enterprise, which holds crypto akin to Bitcoin (BTC) and Ethereum (ETH) for patrons, reported minimal revenues of $328,000 and working losses of $27,000 within the third quarter of 2023.
Moreover, the corporate narrowly prevented delisting from the New York Inventory Alternate earlier this yr by way of a 1-for-25 reverse inventory break up.
Regardless of its struggles, Bakkt’s institutional focus and ties to ICE, the New York Inventory Alternate proprietor, might supply strategic worth to TMTG. Bakkt’s first CEO, Kelly Loeffler, is a detailed Trump ally and co-chair of his inauguration committee.
