Trump Media and Technology Group (TMTG), the social media company owned by former President Donald Trump, is reportedly in advanced negotiations to acquire Bakkt, a cryptocurrency trading venue owned by Intercontinental Exchange (ICE). The potential all-share deal, if finalized, would significantly expand TMTG’s reach beyond social media and deepen Trump’s involvement in the cryptocurrency market.
Bakkt’s market capitalization stood at just over $150 million on Monday, though the exact valuation under discussion remains undisclosed. TMTG, which operates the Truth Social platform, has seen its stock become a favorite among retail investors since Trump’s election victory, achieving a $6 billion equity valuation despite reporting only $2.6 million in revenue this year. This high valuation provides TMTG with considerable leverage for acquisitions.
Following the news of the potential acquisition, Bakkt’s shares soared 86%, while TMTG shares saw a 14% increase. This surge reflects the market’s positive reaction to the potential synergy between the two companies.
The move into the cryptocurrency market aligns with Trump’s recent promotion of World Liberty Financial, a new crypto venture founded by his longtime business partners, from which he stands to earn substantial fees. The cryptocurrency market has also rallied since Trump’s election, with Bitcoin rising over 30% on speculation of favorable legislation under his administration.
Bakkt, which has struggled to achieve profitability, was founded by ICE, the owner of the New York Stock Exchange, which retains a 55% economic interest. Kelly Loeffler, Bakkt’s first CEO, is a former ICE marketing head, a Republican ex-senator who served during Trump’s first presidency, and co-chair of Trump’s upcoming inauguration committee. She is also married to Jeff Sprecher, ICE’s founder, chair, and CEO.
The deal reportedly excludes Bakkt’s crypto custody business, which has been struggling and is expected to be wound down. Bakkt is currently focused on developing a trading platform for institutional investors.
While Truth Social’s reach remains relatively small, with an average of 646,000 daily visits this month compared to X’s 155 million, Trump’s stake in TMTG represents over half of his estimated $5.7 billion wealth.
