A social media company mostly owned by US President-elect Donald Trump is reportedly in talks to buy Bakkt, a cryptocurrency trading and custody firm backed by Intercontinental Exchange Inc.
The Financial Times says, based on insights from two sources, that the Trump Media and Technology Group, which runs the microblogging platform Truth Social, is in advanced discussions for an all-stock deal to acquire Bakkt. The exact amount remains undisclosed.
As of November 18, Trump Media & Technology Group Corp (NASDAQ: DJT) had a market cap of $7.12 billion. In contrast, Bakkt Holdings Inc (NYSE: BKKT) was valued at around $402 million.
Interestingly, the report notes that Bakkt’s crypto custody business, which has struggled to gain traction, is not part of the acquisition talks. This part of the business is likely to be shut down.
Back in June, reports suggested Bakkt was working with a financial advisor to explore options for a sale or restructuring. Founded in 2018, Bakkt went public in 2021. The parent company, Intercontinental Exchange, owns 55.6% of Bakkt.
Trump Media and Technology Group’s interest in acquiring a crypto firm comes shortly after the US President-elect launched a decentralized finance (DeFi) project called World Liberty Financial. Before the launch, World Liberty Financial made it clear that its goal is to boost global DeFi adoption.
They stated, “Our mission is crystal clear: make crypto and America great by driving the mass adoption of stablecoins and decentralized finance. We believe that DeFi is the future, and we’re committed to making it accessible and secure for everyone. By spreading U.S.-pegged stablecoins around the world, we ensure that the US dollar’s dominance continues, securing America’s financial leadership and influence on the global stage.”