Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesCopyBotsEarn
Donald Trump's social media company in talks to buy Bakkt, in latest twist for ICE-founded crypto platform

Donald Trump's social media company in talks to buy Bakkt, in latest twist for ICE-founded crypto platform

The BlockThe Block2024/11/17 16:00
By:The Block

Quick Take Donald Trump’s social media company Truth Social is reportedly in “advanced talks” to acquire storied crypto platform Bakkt, according to the Financial Times citing two people familiar with the matter. Bakkt, founded by NYSE operator Intercontinental Exchange in 2018, has gone through multiple pivots as it has struggled to gain traction.

Donald Trump's social media company in talks to buy Bakkt, in latest twist for ICE-founded crypto platform image 0

Donald Trump’s social media company Truth Social is reportedly in “advanced talks” to acquire crypto platform Bakkt, according to the Financial Times , which cited two people familiar with the matter. 

If closed, the all-stock deal would see the president-elect’s Trump Media and Technology Group, which Trump maintains a 53% stake in, purchase the company from the Intercontinental Exchange, the operator of the New York Stock Exchange.

The move represents Trump’s growing involvement with the crypto industry and the latest twist for the once buzzy Atlanta-based Bakkt, which has gone through multiple reinventions since it was founded in 2018.

Trump, who raised hundreds of millions of dollars from crypto heavyweights on the campaign trail, has launched several major crypto efforts, including multiple NFT series and a DeFi protocol called World Liberty Financial. The former president has also made overt pledges protect and bolster the blockchain industry including firing the blockchain skeptic in charge of the U.S. Securities and Exchange Commission Gary Gensler as well as freeing Silk Road founder Ross Ulbricht, a folk hero among many bitcoiners. 

Kelly Loeffler, Bakkt’s first CEO, stepped down in 2019 to briefly become a Republican U.S. senator from Georgia under the first Trump administration and is now helping to organize his inauguration in January. She is married to ICE CEO Jeff Sprecher.

ICE launched Bakkt over a half a decade ago and maintains a 55% interest in it. The platform was initially geared as an institution-grade trading platform for daily physically-settled bitcoin futures contracts — a product it initially struggled to get off the ground.

Shortly after launching its first crypto options products, Bakkt announced that it was pivoting to focus on crypto custody and a consumer-focused reward-points operation. Recently, Bakkt said it was likely to wind down its custody business. 

Prior to its public-listing via SPAC, Bakkt has raised hundreds of millions of dollars from investors including Boston Consulting Group, Galaxy Digital, ICE and Microsoft's M12 venture fund. However, it has struggled to reach profitability. 

In April, Bakkt deployed a 1 for 25 reverse stock split to avoid delisting from the NYSE. Its shares (ticker: BAKKT) jumped 15% last week amid the marketwide rally fomented by Trump’s nomination and are up 162.37% in post-market trading on Monday.

Editor's note (Nov. 18, 2024 — 17:00 UTC): Update's with post-market close stock price. 


0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Locked for new tokens.
APR up to 10%. Always on, always get airdrop.
Lock now!

You may also like

1MCHEEMSUSDT now launched for futures trading and trading bots

Bitget has launched 1MCHEEMSUSDT for futures trading with a maximum leverage of 20, along with support for futures trading bots, on November 25, 2024 (UTC+8). Welcome to try futures trading via our official website (www.bitget.com) or Bitget APP. 1MCHEEMSUSDT-M perpetual futures: Parameters Details

Bitget Announcement2024/11/25 09:01

Token listing: Instantly buy/sell BTC with EUR & BRL via cash conversion!

Bitget users can now instantly buy or sell BTC with EUR or BRL balances via cash conversion! Buy/Sell Crypto Tips: Enjoy a transaction fee rebate in USDT on your first cash conversion transaction! Additional perks >>> Flash Monday: Buy crypto with a credit/debit card for zero fees >>> Flash Thursda

Bitget Announcement2024/11/25 08:12

Orbiter Finance collaborates with the Ethereum Foundation and the University of California, Santa Barbara to enhance the security model of bridging p

Since its establishment in 2021, Orbiter has been deeply exploring security, aiming to become a reliable infrastructure in the cross-chain field.

Chaincatcher2024/11/25 07:55

OXTUSDT now launched for futures trading and trading bots

Bitget has launched OXTUSDT for futures trading with a maximum leverage of 25, along with support for futures trading bots, on November 25, 2024 (UTC+8). Welcome to try futures trading via our official website (www.bitget.com) or Bitget APP. OXTUSDT-M perpetual futures: Parameters Details Listing t

Bitget Announcement2024/11/25 07:50