Trump Media & Technology Group in Talks to Acquire Bakkt
In a significant development, US President-elect Donald Trump’s Trump Media & Technology Group (TMTG) is currently in discussions to purchase the digital asset marketplace Bakkt. This potential acquisition has sparked excitement among investors and industry insiders, with Bakkt’s shares experiencing a remarkable surge following reports of the talks.
Background on Bakkt
Bakkt, which was originally a part of Intercontinental Exchange (ICE) and remains majority-owned by the parent company of the New York Stock Exchange (NYSE), has been exploring a possible sale for several months. ICE, a major player in the futures markets, launched Bakkt amid much fanfare in 2018. However, recent challenges have led to uncertainties about Bakkt’s future.
Details of the Acquisition Talks
According to sources familiar with the discussions, Trump Media is nearing an all-share purchase of Bakkt. The potential deal has already had a significant impact on Bakkt’s market capitalization, which stood at US$155 million as of November 15. The Financial Times initially broke the news of the talks, describing them as being at an advanced stage.
Market Response and Implications
Following reports of the acquisition talks, Bakkt’s shares surged by a staggering 163% to US$29.71 on November 18. This dramatic increase comes after a period of volatility in cryptocurrency prices, with Bakkt’s stock reaching over US$1,000 in October 2021. However, the recent challenges faced by Bakkt have raised concerns about its ability to continue operations and potential delisting from the NYSE.
Key Players and Connections
Notably, Bakkt’s founding chief executive, Ms. Kelly Loeffler, has close ties to ICE and NYSE through her marriage to Mr. Jeffrey Sprecher, the founder and CEO of ICE. Ms. Loeffler, who also served as a US Senator from Georgia, is currently involved in Trump’s inaugural committee alongside Mr. Steve Witkoff. Trump Media, which owns over 50% of TMTG, operates Truth Social, a prominent social media platform.
Market Reaction and Future Prospects
Following the news of the potential acquisition, TMTG’s shares experienced a notable uptick of 16.7% to US$32.78 on November 18. This development underscores the market’s optimism about the future prospects of both TMTG and Bakkt, as well as the broader implications of this strategic move.
Conclusion
The ongoing discussions between Trump Media & Technology Group and Bakkt signal a potentially transformative deal in the digital asset marketplace. As investors closely monitor the progress of these talks, the outcome could have far-reaching implications for the industry at large, reshaping the landscape of digital asset trading and technology.
FAQs
1. What is Bakkt?
Bakkt is a digital asset marketplace that was initially launched by Intercontinental Exchange (ICE) and is currently majority-owned by the parent company of the New York Stock Exchange (NYSE). It has been exploring a potential sale in recent months.
2. Who is involved in the acquisition talks?
US President-elect Donald Trump’s Trump Media & Technology Group (TMTG) is in discussions to acquire Bakkt, with the potential deal being described as at an advanced stage. Bakkt’s founding chief executive, Ms. Kelly Loeffler, has close ties to ICE and NYSE through her marriage to Mr. Jeffrey Sprecher, the founder and CEO of ICE.