Crypto Stock Bakkt Soars 160% on Trump Media Acquisition Talks

Shares of Bakkt (NYSE: BKKT) stock skyrocketed over 160% on Monday thanks to a report that revealed Trump Media (NASDAQ: DJT), the parent company of Truth Social, is in advanced talks to acquire the cryptocurrency trading platform. News of the potential deal sent ripples across the market, fueling investor excitement in both cryptocurrencies and equities.

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Deal That Sparked the Rally

According to a report by the Financial Times, Trump Media is negotiating an all-share deal to acquire Bakkt, which was created by Intercontinental Exchange (NYSE: ICE), the owner of the New York Stock Exchange. ICE retains a 55% stake in Bakkt, which has faced challenges in achieving profitability. While the exact valuation of the deal remains undisclosed, the market responded enthusiastically to the development.

Trump Media, majority-owned by President-elect Donald Trump, saw its stock climb 16.7% on the same day, closing at $32.78. The company, valued at over $7 billion, has been a volatile yet popular pick among retail investors, particularly in the wake of Trump’s recent election victory.

Bakkt Stock Finds New Momentum

Launched in 2018, Bakkt aimed to revolutionize crypto trading but has struggled with profitability. In its most recent Q3 earnings report, Bakkt reported revenue of $328.4 million, up 60.4% over last year’s third quarter. The company also posted a net loss of $6.3 million, an 87.8% improvement year-over-year. The company also narrowly avoided delisting earlier this year after completing a 1-for-25 reverse stock split.

Despite its challenges, Bakkt’s potential remains significant. The firm is pivoting to develop a trading platform targeting institutional investors, a move that could align well with Trump Media’s broader ambitions in the cryptocurrency space. Notably, the company’s crypto custody business, which has failed to gain traction, is reportedly excluded from the acquisition talks.

Bakkt President and CEO Andy Main commented on the state of the business since the 2024 election, stating:

“Since the US Presidential election, we’ve seen a dramatic increase in trading volumes driven by favorable macro sentiment and rising crypto prices.”

Trump’s Growing Crypto Footprint

This acquisition marks another step in Trump’s deepening involvement in cryptocurrency. The President-elect, once a crypto skeptic, has transformed into a vocal proponent of digital assets. His campaign promises included creating a Bitcoin reserve and firing SEC Chair Gary Gensler, moves viewed as bullish for the crypto sector.

Earlier this year, Trump launched a crypto venture, World Liberty Financial, which aims to establish a global financial network. His advocacy for cryptocurrencies has coincided with a sharp rise in Bitcoin’s (BTCUSD) price, which touched an all-time high of $93,445 earlier this month.

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Ripple Effects Across Crypto Market

The acquisition news also lifted other crypto-related stocks. Coinbase (NASDAQ: COIN), a leading cryptocurrency exchange, saw its shares rise 6% amid reports that its CEO, Brian Armstrong, is scheduled to meet with Trump. Armstrong has publicly endorsed crypto-friendly regulatory changes, and this meeting could signal further developments for the industry.

Intercontinental Exchange, Bakkt’s majority owner, also stands to benefit. While ICE has remained silent on the potential deal, its approval will be crucial for the transaction to proceed. ICE’s ties to Bakkt run deep, with former Bakkt CEO Kelly Loeffler—a prominent Trump ally and co-chair of his inauguration committee—playing a key role in its inception.

What’s Next?

If the deal goes through, it would position Trump Media as a significant player in the crypto landscape. For Bakkt, the acquisition could provide much-needed financial stability and a platform to realize its institutional trading ambitions.

The market’s enthusiastic response highlights the growing optimism surrounding Trump’s presidency and its potential impact on cryptocurrency regulations. While challenges remain, particularly regarding Bakkt’s historical losses, investors are betting on Trump Media’s ability to turn the company around.

As the crypto sector continues to evolve, this potential acquisition could signal a shift in how traditional and digital finance intersect. One thing is certain: the markets will be watching closely as these talks progress.

Bakkt (BKKT) Stock Price Action and Chart

Shares of Bakkt (NYSE: BKKT) stock skyrocketed 162.46% on Monday, closing the day at $29.71. YTD, BKKT stock is down 43.94%.

Trump Media (NASDAQ: DJT) stock finished the day up 16.65% at $32.78 per share. YTD, DJT stock is up 87.85%.

View Bakkt Interactive Stock Chart on Barchart

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Disclaimer: Wealthy VC does not hold a position in any of the stocks, ETFs or cryptocurrencies mentioned in this article.