Bakkt Holdings Inc experienced a remarkable surge in its stock price, rising over 162% during trading on November 18. The notable increase followed a report suggesting that Trump Media and Technology Group Corp, the parent company of the social media platform Truth Social, was in advanced discussions for a potential acquisition of the crypto exchange. The stock closed at $29.71, with an additional climb to $34.59 in after-hours trading. This surge in stock price coincided with Trump Media’s own stock increase of 16.65% during regular trading, although it experienced a slight decline after hours.
The report indicated that Trump Media, in which Donald Trump holds a 53% majority stake, was negotiating an all-share purchase agreement for Bakkt, which is owned by Intercontinental Exchange. The crypto market has seen considerable growth following Trump’s electoral victory earlier this month, with Bitcoin ’s value rising approximately 30%. Trump’s campaign included pledges to improve regulatory conditions for the crypto industry and proposed establishing a strategic Bitcoin reserve.
If successfully executed, this acquisition could signify Trump’s deeper involvement in the cryptocurrency sector. The incoming administration had previously engaged in licensing Trump’s image for several non-fungible token collections, as well as supporting a family-run crypto initiative set to generate substantial revenue for them. While Intercontinental Exchange declined to comment on the negotiations, the details of the deal remain speculative, and Bakkt faces challenges in maintaining profitability despite its soaring market valuation, now exceeding $400 million.
Establishing a Bitcoin reserve would likely face obstacles requiring legislative approval, making it a complex endeavor. Observers suggest that a special purpose vehicle (SPV) could facilitate this process, allowing Trump Media to use Bakkt to navigate potential regulatory hurdles and create a framework for Bitcoin purchases while ensuring that profits could be transferred to the U.S. government.
