Donald Trump's social media company in talks to buy Bakkt, in latest twist for ICE-founded crypto platform
Quick Take
- Donald Trump’s social media company Truth Social is reportedly in “advanced talks” to acquire storied crypto platform Bakkt, according to the Financial Times citing two people familiar with the matter.
- Bakkt, founded by NYSE operator Intercontinental Exchange in 2018, has gone through multiple pivots as it has struggled to gain traction.
Donald Trump’s social media company Truth Social is reportedly in “advanced talks” to acquire crypto platform Bakkt, according to the Financial Times, which cited two people familiar with the matter.
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 move represents Trump’s growing involvement with the crypto industry and the latest twist for the once buzzy Atlanta-based Bakkt, which has gone through multiple reinventions since it was founded in 2018.
Trump, who raised hundreds of millions of dollars from crypto heavyweights on the campaign trail, has launched several major crypto efforts, including multiple NFT series and a DeFi protocol called World Liberty Financial. The former president has also made overt pledges protect and bolster the blockchain industry including firing the blockchain skeptic in charge of the U.S. Securities and Exchange Commission Gary Gensler as well as freeing Silk Road founder Ross Ulbricht, a folk hero among many bitcoiners.
Kelly Loeffler, Bakkt’s first CEO, stepped down in 2019 to briefly become a Republican U.S. senator from Georgia under the first Trump administration and is now helping to organize his inauguration in January. She is married to ICE CEO Jeff Sprecher.
ICE launched Bakkt over a half a decade ago and maintains a 55% interest in it. The platform was initially geared as an institution-grade trading platform for daily physically-settled bitcoin futures contracts — a product it initially struggled to get off the ground.
Shortly after launching its first crypto options products, Bakkt announced that it was pivoting to focus on crypto custody and a consumer-focused reward-points operation. Recently, Bakkt said it was likely to wind down its custody business.
Prior to its public-listing via SPAC, Bakkt has raised hundreds of millions of dollars from investors including Boston Consulting Group, Galaxy Digital, ICE and Microsoft's M12 venture fund. However, it has struggled to reach profitability.
In April, Bakkt deployed a 1 for 25 reverse stock split to avoid delisting from the NYSE. Its shares (ticker: BAKKT) jumped 15% last week amid the marketwide rally fomented by Trump’s nomination and are up 162.37% in post-market trading on Monday.
Editor's note (Nov. 18, 2024 — 17:00 UTC): Update's with post-market close stock price.
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