Bakkt shares surge 162% amid potential Trump Media deal

Bakkt Holdings Inc. experienced a significant surge in its share price, rising over 162% on November 18 after a report from the Financial Times indicated that Donald Trump’s company, Trump Media and Technology Group Corp (DJT), is in advanced talks to acquire the crypto exchange.

Shares of Bakkt closed at $29.71 and continued to climb by 16.43% in after-hours trading, reaching $34.59.

Trump Media, which operates the social media platform Truth Social, also saw a 16.65% increase but experienced a 3.5% decline in after-hours trading.

The report, citing two sources familiar with the matter, suggested that Trump Media, in which the president-elect holds a 53% stake, is considering an all-share acquisition of Bakkt, owned by Intercontinental Exchange.

Despite this surge, Bakkt’s shares remain down approximately 44% for the year and are significantly below their October 2021 peak.

Trump's election victory has boosted the crypto market, with Bitcoin experiencing a 30% increase amid expectations of eased regulatory measures and potential government-backed Bitcoin (CRYPTO:BTC) reserves.

If this acquisition is finalised, it would extend Trump’s presence in the crypto space, complementing past initiatives like NFT collections and his family’s crypto project, World Liberty Financial.

Although the deal's valuation has not been disclosed, Bakkt's market capitalisation has now surpassed $400 million post-surge.

Despite prior setbacks, including an underperforming crypto custody business slated for closure, Bakkt has maintained attention within the industry.

Izabella Kaminska, founder of The Blind Spot, speculated that Trump Media might use Bakkt as a special purpose vehicle (SPV) to manage a Bitcoin reserve without needing congressional approval.

Kaminska suggested that this structure could allow Trump Media to purchase Bitcoin and establish a profit-sharing model to channel capital gains to the U.S. government, signaling a potential strategic shift under Trump’s administration.