Donald Trump was viewed as the more pro-cryptocurrency presidential candidate in the 2024 election and his support for crypto could get another push with a report that his media company is acquiring a cryptocurrency trading company.
What Happened: Shares of Bakkt Holdings (NASDAQ:BKKT) are soaring Monday on reports the cryptocurrency company, which went public in October 2021 via SPAC merger, is being acquired by Trump Media & Technology Group (NASDAQ:DJT).
The media company co-founded by Trump, which owns the Truth Social platform, is in advanced talks to acquire Bakkt, according to the Financial Times. The report said Trump Media & Technology Group would acquire the cryptocurrency company, which is backed by Intercontinental Exchange (NYSE:ICE), in an all-share deal.
Benzinga reached out to Trump Media & Technology Group for comment on the report and will update the story accordingly. Benzinga has also contacted Bakkt for comment.
Bakkt's first CEO was Kelly Loeffler, who was previously a member of the U.S. Senate, representing the state of Georgia as a Republican. Loeffler is helping to organize Trump's inauguration in January and has close ties to the president-elect.
The Intercontinental Exchange, which owns the New York Stock Exchange, owns a reported 55% of Bakkt. The exchange company would have to give approval to any such sale to the Trump media company.
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Why It's Important: Bakkt said in June it was exploring strategic alternatives that could include a sale or breakup of the company.
The company previously said its crypto custody business could be wound down. This segment might not be included in the buyout, according to the report. Bakkt is planning to build a crypto trading platform geared to institutional investors.
DJT shares have experienced high volatility and an increased valuation after Trump won the 2024 election.
Trump's pro-crypto stance may have helped elevate Bitcoin (CRYPTO: BTC) and other cryptocurrencies to all-time highs following his 2024 election win.
An acquisition of Bakkt would push Trump's media company and the president-elect deeper into the cryptocurrency sector, which comes after he promoted a crypto venture called World Liberty Financial with business partners.
BKKT, DJT Price Action: Bakkt stock was halted several times after the report and ended Monday's session 163.04% higher at $29.71 versus a 52-week trading range of $5.57 to $68.75. Bakkt shares are down 44% year-to-date in 2024.
Trump Media & Technology stock is up 16.65% to $32.78 Monday versus a 52-week trading range of $22.55 to $79.38. Trump Media & Technology stock is up 85% year-to-date in 2024.
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