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Donald Trump's social media company, Truth Social, is reportedly in advanced talks to buy the well-known crypto platform Bakkt. This information comes from the Financial Times, citing two sources familiar with the situation.
Bakkt, founded by the Intercontinental Exchange (ICE) in 2018, has gone through several changes as it has tried to find its footing in the market. If the deal goes through, it will be an all-stock agreement. This means Trump Media and Technology Group, where Trump holds a 53% stake, would acquire Bakkt from ICE, which operates the New York Stock Exchange.
This move shows Trump’s growing interest in the crypto industry. It also marks another chapter for Bakkt, which has experienced various transformations since its launch.
Kelly Loeffler, who was Bakkt’s first CEO, stepped down in 2019. She briefly served as a Republican U.S. senator from Georgia. Now, she’s helping organize Trump’s inauguration in January. She is married to ICE CEO Jeff Sprecher.
During his campaign, Trump raised significant funds from key players in the crypto world. He has launched several major initiatives, including multiple NFT series and a decentralized finance (DeFi) protocol called World Liberty Financial. He has also made promises to the crypto community, like removing Gary Gensler, the blockchain skeptic leading the U.S. Securities and Exchange Commission, and advocating for the release of Ross Ulbricht, the founder of Silk Road.
ICE launched Bakkt over a decade ago and still holds a 55% stake in it. Bakkt initially aimed to be a top trading platform for daily physically settled bitcoin futures contracts. However, it struggled to get this off the ground. Shortly after launching, Bakkt shifted its focus to crypto custody and a rewards points system. Recently, Bakkt indicated it might wind down its custody operations.
Over the years, Bakkt has raised hundreds of millions from investors like Boston Consulting Group, Galaxy Digital, ICE, and Microsoft’s M12 venture fund. However, it has faced challenges reaching profitability. In April, Bakkt executed a 1-for-25 reverse stock split to avoid being delisted from the NYSE. Last week, its shares jumped 15% amid a broader market rally following Trump’s nomination. They are up 1% in afternoon trading on Monday.