Trump Media in Talks to Acquire Crypto Trading Platform Bakkt in Ambitious Expansion Move

Its crypto custody business, designed for storing digital assets like Bitcoin and Ethereum, has failed to gain traction and is excluded from the deal. Instead, Bakkt is focusing on developing a trading platform for institutional investors.

While TMTG’s Truth Social has a modest user base of 646,000 daily visitors, the company’s $6 billion equity valuation gives it the leverage to pursue acquisitions like Bakkt. News of the negotiations boosted Bakkt shares by 86%, and TMTG shares rose by 14%.

This potential acquisition aligns with Trump’s growing interest in cryptocurrency, including his involvement in World Liberty Financial, a crypto venture. As Trump prepares for his second term, the deal could position TMTG as a key player in the crypto market, tapping into the industry’s growth and diversifying its business operations.

Donald Trump’s media company, Trump Media and Technology Group (TMTG), which owns the social platform Truth Social, is in advanced negotiations to acquire Bakkt, a cryptocurrency trading platform owned by Intercontinental Exchange (ICE). This move signals the company's intent to diversify beyond social media and deepen its footprint in the crypto industry.

The all-share deal, currently under discussion, would allow TMTG to leverage its $6 billion equity valuation to acquire Bakkt, which had a market capitalization of just over $150 million as of Monday. Bakkt shares skyrocketed 86% after news of the potential acquisition broke, while TMTG shares climbed by 14%.

Despite its significant valuation, TMTG has reported modest revenue of $2.6 million this year. Its flagship platform, Truth Social, averages 646,000 daily visits — a fraction of the 155 million daily users on Elon Musk’s X platform. Nevertheless, the deal could position TMTG to capitalize on the cryptocurrency boom, particularly as Bitcoin has surged 30% amid speculation of favorable industry legislation under Trump’s administration.

Bakkt, founded by ICE and previously led by Kelly Loeffler, has struggled for profitability and recently faced delisting from the New York Stock Exchange. The company executed a reverse stock split earlier this year to stabilize its share price. ICE, which still holds a 55% stake in Bakkt, declined to comment on the ongoing talks.

Notably, Bakkt’s underperforming crypto custody business, which was designed to securely store assets like Bitcoin and Ethereum, is excluded from the deal. The business reported losses of $27,000 against $328,000 in revenue during the last quarter and will likely be wound down. Bakkt is now shifting its focus to building a trading platform for institutional investors.

This acquisition aligns with Trump’s recent ventures into cryptocurrency, including his promotion of a new crypto project, World Liberty Financial, from which he stands to earn substantial fees. A successful deal would further strengthen Trump’s influence in the sector and diversify his media company’s offerings.

As Trump prepares for his second term, the move reflects his broader strategy to solidify his business empire while tapping into emerging markets like cryptocurrency.